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,

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.

US stocks climbed on Monday, with chip stocks leading the tech sector higher while investors eyed a possible year-end rally. All three benchmark indexes ended the trading session in the green, with the tech-heavy Nasdaq Composite rising nearly 1%.

Chip stocks advanced, led by Broadcom ( AVGO) after UBS analysts raised their price target for the stock, citing the chipmaker's artificial intelligence (AI) revenue growth. Advanced Micro Devices ( AMD) shares also surged after Rosenblatt analysts called it a "top pick" on its AI-driven potential.

The newest member of the trillion-dollar market-cap club is looking ahead to a “likely sharp new product ramp” in the second half of 2025, according to an analyst.

Stocks finished higher in Tuesday’s holiday-shortened session with the three major stock indexes rising for a third-straight trading day.These stocks were making moves Tuesday:Super Micro Computer gained 6% to $34.