Global investment in artificial intelligence (AI) is projected to remain strong in 2025, with IDC estimating that organizations will spend $337 billion on integrating AI tools into their operations. Notably, 67% of this spending is anticipated to come from enterprises embedding AI into their core operations, outpacing investments in major cloud and digital service providers. Tech giants in cloud computing will continue to invest heavily in their AI infrastructure. Nvidia leads the AI market with its powerful GPUs, essential for training large language models (LLMs), indicating ongoing revenue and earnings growth for the chipmaker. However, two other companies, Broadcom and Snowflake, are also poised to benefit significantly from the AI boom. **Broadcom: A Leading AI Chipmaker** While Nvidia excels in GPU technology, Broadcom (AVGO) is a key player in application-specific integrated circuits (ASICs), custom chips designed for specific tasks, making them more energy-efficient. Broadcom's custom AI processors, known as XPUs, are being used by major cloud computing companies. The company is reportedly set to manufacture chips for Meta Platforms, Google, ByteDance, OpenAI, and possibly Apple. Broadcom's management noted in its December 2024 earnings call that it is providing custom AI chips to three hyperscale customers, expected to deploy one million chip clusters over three years. With an addressable AI market projected to reach $60 billion to $90 billion by fiscal 2027, Broadcom's AI revenue has already skyrocketed to $12. 2 billion in fiscal 2024—a 220% increase from the previous year.

Analysts have upped revenue forecasts, and with a PEG ratio of 0. 7, the stock appears undervalued relative to expected growth, making it a potential buy even after a 108% rise in value over the past year. **Snowflake: AI Solutions for Enterprise Data** Unlike Broadcom and Nvidia, Snowflake (SNOW) focuses on consolidating enterprise data onto a single platform, enabling customers to build generative AI applications and derive insights from their data. IDC predicts that a substantial portion of AI spending will support AI integration into business operations, benefiting Snowflake significantly. Snowflake's Cortex AI platform has gained notable adoption, allowing over 3, 200 customers to analyze data and create generative AI applications. Following the launch of its AI services in mid-2023, the company is also venturing into the AI agents market with its Snowflake Intelligence platform, designed for secure data analysis and actionable insights. The agentic AI market is estimated to generate $45 billion in 2025, presenting a sizable growth opportunity for Snowflake. Notably, Snowflake's remaining performance obligations—a measure of future revenue—grew 55% in the third quarter of fiscal 2025, considerably outpacing the 29% year-over-year revenue increase. Its net revenue retention rate was 127%, indicating that existing customers are increasing their spending. As Snowflake upsells its AI products to its growing customer base, it is well-positioned for more than 40% earnings growth in the coming years. In summary, both Broadcom and Snowflake are strategically positioned to capitalize on the expanding AI market, making them strong contenders for investment in 2025.