Both stocks have had strong runs in 2024. Let's consider which semiconductor looks like the better buy heading into 2025.

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 may have had a volatile year, but the stock was rising on investor enthusiasm Tuesday as it headed for its best year on record. The California-based tech company is known for making application-specific integrated circuits,

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,

Broadcom estimates revenue from its three existing hyperscale customers will range from $60 billion to $90 billion in 2027, up from $12.2 billion in 2024. In other words, the company anticipates that custom AI chip sales will increase at least 70% annually in the next three years, but perhaps as quickly as 95% annually.

Broadcom (AVGO) is extending its December rally, up 46% since the start of the month as analysts chime in with bull notes