The US stock market has most certainly taken a step back so far this year. Momentum has certainly been hard to come by, even for the most promising tech firms. However, there is one race that appears to be heating up. Indeed, Nvidia (NVDA) and Broadcom (AVGO) have seen competition ignite as the AI race is ramping up so far in 2025.

There were few who believed this faceoff would be viable this year. In fact, it was Nvidia that surged more than 170% in 2024. However, this has changed in March, as both stocks are starting to increase amid a sluggish market. Moreover, Broadcom’s XPUs have shown the potential to challenge Nvidia’s dominant position.

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Nvidia vs Broadcom: Why the AI Stock Race is Renewed This Year

It was this week that saw analysts claim the birth of the Magnificent Eight has taken place. Indeed, experts have noted that Broadcom (AVGO) may have the potential to join tech’s Magnificent Seven firms, being the newest competition in the tech sector.

That is set to place two key firms in direct competition. Indeed, both Nvidia (NVDA) and Broadcom are set to face off in an igniting AI stock race that could kick off in 2025. Although the former sports top-tier GPUs, AVGO has created custom AI accelerators called XPUs that could completely change the landscape.

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There is no doubt that GPUs are valuable to the ongoing AI training many companies are embracing. They process various calculations in parallel, and are perfect for handling the vast workloads that are required within the emerging technology. These allow AI firms to scale to data centers that can use more than 100,000 GPUs at one time.

However, XPUS are very different, because they are more targeted. These process just one type of workload, and are far more useful with a more focused AI training workload. Moreover, there are few wasted resources, with them being primarily viewed as more powerful than its predecessor. This is the key reason why many expect Broadcom and Nvidia to have a renewed rivalry this year.

This year, Broadcom’s AI revenue alone is expected to surpass $12.2 billion. Yet, its XPU market is projected to reach as much as $90 billion over the next two years alone. That could spell danger for Nvidia. If that trajectory can continue, it will soon look to be the clearest competition in an increasingly crowded sector.