We recently compiled a list of the 15 Semiconductor Stocks Making Impressive Comeback From DeepSeek AI Dip. In this article, we are going to take a look at where Broadcom Inc. (NASDAQ:AVGO) stands against the other semiconductor stocks.
The semiconductor industry has always been a battleground for technological development, though lately, it has turned into a full-scale battle. The US and China are not only vying to outpace each other in the race to achieve AI superiority but are also actively trying to slow each other down.
The US for instance has placed a number of export restrictions on global firms selling semiconductor technologies to China. Many leading US companies have had to deal with declining China sales as a result of these restrictions. On the other hand, China is trying its best to come up with technologies that compete with those in the US, despite restrictions.
The emergence of DeepSeek AI at the end of January was a wake-up call for the Americans, with China building its latest AI model for a fraction of the cost that the US counterparts spend on their models. While the validity of these claims is debatable, it does show how far China has come when it comes to competing with the US.
As a result of the DeepSeek AI announcement, many semiconductor stocks took a big hit. Two weeks later, some of the stocks started recovering and investors started feeling comfortable with the thought of continued technological dominance by the US. We therefore decided to look at the semi-stocks that were making a comeback from the DeepSeek dip.
To come up with the list of 15 semiconductor stocks making a comeback from DeepSeek AI dip, we only considered stocks with a market cap of at least $10 billion that beat the S&P 500 in the last 5 days of trading.
A technician working at a magnified microscope, developing a new integrated circuit.
Broadcom Inc. (NASDAQ:AVGO)
Broadcom Inc. (NASDAQ:AVGO) is a developer, designer, and supplier of different semiconductor devices. The company operates in infrastructure software and semiconductor solutions segments. It offers optical and copper physical layer devices, mobile device connectivity solutions, Ethernet switching and routing custom silicon solutions, RF front-end modules and filters, and other products and services. The stock is up 2.42% in the last week against the S&P 500’s 1.13% gains.
Broadcom Inc. (NASDAQ:AVGO)’s bullish run has brought it back to almost the same level it was trading at before DeepSeek Monday. The optimism is fueled primarily by the prospects of the company’s custom chips business. Broadcom Inc. (NASDAQ:AVGO) was a beneficiary of hyperscalers looking for custom GPUs to improve the efficiency of their AI model training processes. Since GPUs weren’t as efficient at performing repeated tasks as ASICs (the custom GPUs that Broadcom makes), the ASICs business grew at an exponential rate for Broadcom Inc. (NASDAQ:AVGO).
Now the company is looking to expand this business further. There are rumors that the company could collaborate with OpenAI to help it make its processors. This could be bigger than it seems, as a potential partnership with OpenAI could open up the company to Project Stargate, essentially giving it access to companies like Oracle, Softbank, and ARM. As an integral component of America’s future AI investments, the company’s business could skyrocket.
Overall AVGO ranks 13th on our list of the semiconductor stocks that are making impressive comeback from DeepSeek AI Dip. While we acknowledge the potential of AVGO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as AVGO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
