Nvidia is rolling out Blackwell, its next-generation AI chip architecture. Meanwhile, Broadcom is chasing what could be a $90 billion opportunity by 2027.

Semiconductor stocks generally move together in tandem with the cyclical nature of the business. But 2024 is an exception to that, with five AI data center highfliers offset by the poor performance of the rest.

With shares in an overbought situation following their earnings, Broadcom stock was in need of a short-term “correction” that would allow the stock to rest and provide an opportunity for investors to “buy the dip” before advancing higher in January.

Broadcom (NASDAQ: AVGO) has been an outstanding investment over the past three years, as shares of the semiconductor giant have shot up an impressive 240% during this time and outpaced the 27% gains clocked by the PHLX Semiconductor Sector index over the same period.

Broadcom’s stock is bucking Friday’s tech-sector declines as a Jefferies analyst highlighted rosy pricing and earnings-growth opportunities.

Some on Wall Street see artificial intelligence-driven demand poised to push sales of Broadcom's chips to fresh highs, powering its stock higher in 2025. But others are more cautious—in the near term,

Nvidia is one of the most popular AI stocks right now because of its lead in the semiconductor space. The company's graphics processing units (GPUs) have been used in data centers for years, and once tech giants began competing for generative AI dominance, the chips were even more in demand.