The number of investors betting that Nvidia, Broadcom, and Marvell Technology shares will fall has increased in December, following a year of massive gains for these semiconductor stocks. In 2024, shares of companies with heavy exposure to generative artificial intelligence saw huge increases as investors bet on the growth that the new and exciting tech could bring.

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

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 Inc.'s stock surged 35% despite a mediocre Q4, as management offered investors a picturesque addressable market forecast for 2027. Read why AVGO is a Hold.

The competition for leadership in the AI chip market is intensifying, with Broadcom Inc. positioning itself as a formidable challenger to Nvidia Corporation in the years ahead.

Nvidia is one of the most popular AI stocks right now because of its lead in the semiconductor space. The company's graphics processing units (GPUs) have been used in data centers for years, and once tech giants began competing for generative AI dominance, the chips were even more in demand.