Key Points
The global artificial intelligence (AI) market is projected to grow at a compound annual growth rate (CAGR) of 30.6% from 2026 to 2033, as reported by Grand View Research. This growth is largely attributed to increasing adoption of AI across various industries.
Nvidia (NASDAQ: NVDA) holds over 90% market share in discrete GPUs, mainly utilized in AI processing. Its recent sales growth is driven by advancements in chip architectures, including the upcoming Rubin architecture in late 2026. Meanwhile, Broadcom (NASDAQ: AVGO) reported a 65% surge in AI chip sales, reaching $20 billion in fiscal 2025, aiming for $60-$90 billion by the end of fiscal 2027.
Both companies are experiencing high double-digit revenue growth, with Nvidia trading at 18 times and Broadcom at 24 times their expected earnings for the next year, indicating potential for further investment gains as the AI market evolves.
