The AI Revolution: Two Hidden Gems to Watch in 2025
As global spending on artificial intelligence (AI) is expected to reach $337 billion in 2025, organizations are integrating AI tools into their core business operations. This trend is driving growth for companies that provide AI infrastructure and solutions.
Cloud Computing Giants Lead the Charge
Nvidia, a leader in AI graphics processing units (GPUs), is well-positioned to benefit from the AI boom. However, two other companies are also poised to capitalize on the proliferation of AI in different verticals.
Broadcom: The ASIC Leader
Broadcom is leading the charge in application-specific integrated circuits (ASICs), custom chips designed for specific tasks. These energy-efficient chips are being used by cloud computing giants, including Meta Platforms, Alphabet’s Google, and ByteDance, to power their data centers. With an estimated 55% to 60% market share in ASICs, Broadcom is set to benefit from the growing demand for AI infrastructure.
A Growing Customer Base and Addressable Market
Broadcom’s custom AI chips are being deployed by three cloud hyperscale customers, with plans to deploy one million chip clusters over the next three years. The company has also been selected by two additional hyperscalers for their next-generation AI XPUs. This expanding customer base could lead to outstanding financial growth for Broadcom, with an addressable market estimated to reach $60 billion to $90 billion in fiscal 2027.
Snowflake: The Data Cloud Platform
Snowflake provides a data cloud platform that enables customers to consolidate their data and build generative AI apps. With IDC expecting a significant portion of AI spending to go toward embedding AI capabilities in businesses’ operations, Snowflake’s addressable market is vast. The company’s AI-focused solutions are already gaining traction, with over 3,200 customers using its AI and machine learning features.
A Growing Opportunity in AI Agents
Snowflake’s move into the fast-growing market for AI agents, with the Snowflake Intelligence platform, is expected to expand its addressable opportunity. The company’s remaining performance obligations (RPO) shot up 55% in the third quarter of fiscal 2025, indicating a potential acceleration in growth.
Top AI Stocks for 2025
Both Broadcom and Snowflake are well-positioned to benefit from the growing demand for AI infrastructure and solutions. With their expanding customer bases, growing addressable markets, and strong financial growth prospects, these two companies are top AI stocks to watch in 2025.
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