Chip Stocks in Spotlight After BofA Calls Nvidia, AMD, Broadcom Top AI Plays

Bank of America reiterated Buy ratings on NVIDIA NVDA, Advanced Micro Devices AMD and Broadcom AVGO as the chip industry heats up,

BofA's analysts pointed to sustained demand for AI chips, cloud infrastructure and cybersecurity tools, saying the group should see resilient earnings into next year.

The note followed reports that Meta Platforms META is weighing use of Alphabet's GOOGL tensor processing units to supplement Nvidia GPUs, a shift that could reshape the AI hardware market.

BofA kept its Buy stance while warning that competition and short-term volatility could intensify as hyperscalers diversify compute strategies.

Analysts note that assuming Meta rents TPUs next year, it would draw a substantial amount of GPU demand and compress prices along the whole supply chain- potentially benefiting Broadcom as it increases TPU manufacturing in the short term and Google invests more in TPU manufacturing.