Small Businesses Optimistic About Growth, Prioritize AI and Non-Bank Lenders

Small businesses anticipate strong growth, with 92% forecasting growth in the next year and 26% expecting significant expansion. 72% prefer non-bank lenders like Enova's OnDeck for working capital needs. 66% of AI-using businesses apply it for marketing tasks. Inflation and cash flow issues are top challenges. 57% are preparing for potential tariff impacts. The findings are based on a survey of 410 small businesses and over 2.9 million loan applications.

Advanced Micro Devices (AMD), Broadcom (AVGO), and Nvidia (NVDA) are emerging as breakout growth stocks poised to lead the semiconductor industry's next decade of innovation and expansion. Each company is leveraging its unique strengths to capitalize on the explosive growth in artificial intelligence (AI) and high-performance computing (HPC) markets.

Advanced Micro Devices (AMD) has been making significant strides in both CPUs and AI accelerators, challenging the dominance of NVIDIA and Intel. The company's dual-play strategy has paid off, with AMD's server CPU share hitting 27.3% and revenue share reaching 41.0% [1]. The growth is driven by robust demand for its EPYC processors, which now power over 1,200 cloud instances globally. AMD's AI GPU sales also grew 40% year-over-year, reaching $1 billion, despite U.S. export restrictions on the MI308 accelerator [1]. The company's product roadmap, including the MI350 and MI400 series, promises significant performance improvements, positioning AMD to capture a substantial share of the AI GPU market.

Broadcom has capitalized on the AI boom, with its stock surging 25% year-to-date. The company's networking and Application-Specific Integrated Circuit (ASIC) businesses are at the heart of the AI-driven rally, driven by massive investments from tech giants in data infrastructure [2]. Broadcom's strategic AI product lineup includes the Jericho4 ethernet fabric router, which delivers high-bandwidth, secure, lossless connectivity across data centers [2]. Analysts project that Broadcom could secure 10%-15% of the accelerator market long term, driven by rising AI compute and networking demand [2]. However, Broadcom faces challenges in Europe due to regulatory hurdles related to its VMware acquisition [2].

Nvidia's CUDA software ecosystem has given it a significant edge in AI training. However, the industry's pivot to inference may create opportunities for AMD and others. Nvidia's AI inference solutions are designed to drive breakthrough performance at data center scale, enabling AI-enabled applications and services [3]. Nvidia's dominance in AI training and inference has made it a key player in the semiconductor industry's growth, but the increasing focus on inference could open up new competition from companies like AMD.

Small businesses anticipate strong growth, with 92% forecasting growth in the next year and 26% expecting significant expansion. 72% prefer non-bank lenders like Enova's OnDeck for working capital needs. 66% of AI-using businesses apply it for marketing tasks. Inflation and cash flow issues are top challenges. 57% are preparing for potential tariff impacts. The findings are based on a survey of 410 small businesses and over 2.9 million loan applications.

For investors seeking exposure to the semiconductor industry's next phase, these three companies offer compelling cases. AMD's expanding ecosystem and next-generation AI offerings, Broadcom's strategic AI product lineup and market position, and Nvidia's leadership in AI training and inference make them attractive long-term investment opportunities.

References:
[1] https://www.ainvest.com/news/amd-strategic-position-ai-hpc-markets-buy-case-reinforced-market-share-gains-product-innovation-2508/
[2] https://theoutpost.ai/news-story/broadcom-rides-ai-wave-stock-surges-amid-tech-giants-infrastructure-investments-19449/
[3] https://www.nvidia.com/en-us/solutions/ai/inference/