While the Rest of the Market Focuses on the Anthropic IPO, These Are My Top 2 Stocks to Buy in November - The Motley Fool
By Google News AI ·
The biggest stock market news in November will likely be the initial public offering of Anthropic, which is likely to happen sometime before Thanksgiving. There will be a lot of fanfare and enthusiasm surrounding Anthropic stock when it goes public, but I expect it will eventually fade, much like what happened after Space Exploration Technologies' IPO earlier this year.
However, two companies that have strong business relationships with Anthropic look like fantastic investments now: Nvidia (NVDA +2.29%) and Broadcom (AVGO +3.07%). Both stocks look highly attractive, and I think investors should pick up shares of them in November rather than waiting for Anthropic to debut.
Nvidia and Broadcom both make AI computing units. Nvidia makes graphics processing units (GPUs), while Broadcom makes custom AI chips. The companies are competing for shares of the same market in data centers, but there is plenty of room for both to succeed, and each chipmaker tackles a different problem.
Nvidia's GPUs are the industry standard in AI computing. They work well in nearly every application where heavy parallel processing power is the key requirement, making them highly flexible and repurposable for an array of computationally intense tasks. However, because they're not optimized for any one task, they're less cost-efficient when placed in servers where they'll be handling just one type of workload for their entire lifespan.
That's where a custom AI computing unit from Broadcom makes a lot of sense. Instead of offering a flexible, one-size-fits-all chip, it partners directly with hyperscalers to design AI chips that are tailored to their specific workloads. While Anthropic isn't designing its own chips right now, it is using chips co-designed by Alphabet (Google's parent company) and…
Originally published by Google News AI