Why AI Chipmakers Are Poised to Dominate Earnings Season

The earnings season ahead is shaping up to be a blockbuster for AI-driven semiconductor stocks, and investors who ignore this trend are playing with fire. KeyBanc Capital Markets' latest analysis of the sector confirms that the AI revolution isn't just hype—it's a tidal wave of demand that's rewriting the rules for chipmakers like NVIDIA (NVDA), AMD (AMD), and Broadcom (AVGO. These companies aren't just riding the wave; they're shaping it.

Let's start with the elephant in the room: NVIDIA. The king of GPUs has always been the go-to for AI, and KeyBanc's report underscores why this stock remains a must-watch. NVIDIA's software ecosystem and hardware dominance give it an insurmountable lead in training large AI models. Even as the company faces growing pains with its next-gen GB200 chip—a delay that's been priced into the stock—the reality is this: when hyperscalers like Amazon and Microsoft need to build AI superclusters, they call NVIDIA first.

But NVIDIA isn't the only game in town. AMD is stepping up its game—and investors are taking notice. KeyBanc just hiked its 2025 AI GPU revenue estimate for AMD to $7 billion, fueled by the breakout success of its MI355 AI GPU. This chip is designed to take on NVIDIA's A100 and H100 in data centers, and while AMD still trails in raw performance, the price-to-performance ratio is winning over cost-conscious cloud providers. If AMD can close the “gap” (as KeyBanc puts it), this stock could be a stealth leader in the AI arms race.

Then there's Broadcom—the unsung hero of AI infrastructure. While NVIDIA and AMD grab headlines for their GPUs, Broadcom is quietly building the digital highways that connect these chips. Its Tomahawk 6 switches, part of its Ethernet-based networking portfolio, are solving critical bottlenecks in AI data centers. KeyBanc's $330 price target (up from $315) isn't a typo: Broadcom's AI-related revenue is projected to hit 40% of total sales by 2026. This isn't just about selling chips; it's about owning the architecture that makes AI possible at scale.

Now, let's address the naysayers. Some worry that near-term AI demand is inflated by tariff-driven “pull-ins,” which could leave the sector flatfooted later this year. Others cite slowing growth in China, the world's largest semiconductor market, or geopolitical risks like the U.S.-China tech war. These are valid concerns, but here's the truth: when it comes to AI, no one is walking away. Hyperscalers like Google and Meta aren't cutting back on data center spending—they're doubling down. Even Texas Instruments' $60 billion U.S. manufacturing push (a move to counter China's edge) shows how seriously the industry is treating this moment.

So where does that leave investors? Here's my call to action:

1. NVIDIA remains the core holding. Its software stack and ecosystem give it a moat that's hard to breach. Even with production hiccups, this is a buy-the-dip stock.
2. AMD is a high-reward, high-risk bet. The $7 billion AI revenue target is a game-changer, but execution matters. If AMD can deliver on its roadmap, it's a multi-bagger.
3. Broadcom is the steady Eddy of AI infrastructure. Its networking chips are the unsung backbone of data centers—own it for the long haul.

Avoid getting distracted by the noise about margin pressures or inventory gluts. Yes, companies like Texas Instruments might face headwinds from depreciation costs, but that's a story for another day. Right now, the AI train is leaving the station, and these three stocks are first-class seats.

Final warning: Don't let geopolitical fears or short-term volatility scare you off. This is a structural shift. The companies that dominate AI chip design today will dominate the next decade of tech. Buckle up—it's going to be a wild ride.