Forget Intel: This Semiconductor Titan Looks Built to Keep Compounding Through the AI Supercycle

Since the commencement of 2025, Intel (NASDAQ: INTC) has been 1 of the best-performing large tech stocks connected the market. The banal is up implicit 170% successful that clip (through Jan. 22), with a ample chunk of that summation coming aft mid-September. Like galore tech companies, Intel tin convey the existent artificial quality (AI) supercycle for overmuch of this turnaround.

As the hardware broadside of AI becomes much captious with hyperscalers (companies similar Microsoft, Alphabet, and Amazon) penning large checks, semiconductor companies are successful a bully spot to capitalize. Although Intel is 1 of them, there's a institution I wouldn't hesitate to take implicit it.

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A fewer years ago, Intel decided to afloat propulsion its chapeau into the semiconductor ringing and go a foundry-first company. It's a determination that galore felt was needed, but weren't 100% definite the monolithic costs would warrant the results anytime successful the foreseeable future.

One large triumph has been Intel's breakthrough with its "18A" manufacturing process, which allows it to nutrient much almighty and businesslike chips. It's 1 of Intel's much encouraging wins successful rather a while, fueling capitalist optimism.

Unfortunately, this breakthrough won't instantly construe to Intel's equilibrium sheet, astatine a clip erstwhile it could usage immoderate growth. In 2025, Intel generated $52.9 cardinal successful revenue, somewhat beneath the $53.1 cardinal it made successful 2024 and the $54.2 cardinal it made successful 2023.

Much of Intel's foundry concern occurrence volition remainder connected its quality to unafraid a large contract. It's firmly successful the "prove it" stage. Broadcom (NASDAQ: AVGO), connected the different hand, is not.

With a marketplace headdress of implicit $1.5 trillion (as of Jan. 22), Broadcom is the ninth-most-valuable nationalist institution successful the satellite and a semiconductor manufacture staple. It besides has large contracts with companies similar Alphabet, Apple, and Meta.

Broadcom's relation successful the AI proviso concatenation is chiefly gathering lawsuit AI accelerators and networking chips. AI accelerators are important due to the fact that they grip a batch of enactment successful grooming AI, and networking chips are utilized to determination monolithic amounts of data. Without both, AI's standard would beryllium limited.

During the adjacent signifier of AI spending, Broadcom is good positioned to payment from accrued demand. That could beryllium a bully boost for a institution that accrued its gross ($63.8 cardinal total) and nett income ($23.1 cardinal total) by 24% and 292%, respectively, successful its latest fiscal twelvemonth (ended Nov. 2, 2025).