Semiconductor stocks generally move together in tandem with the cyclical nature of the business. But 2024 is an exception to that, with five AI data center highfliers offset by the poor performance of the rest.

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

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,

Broadcom (NASDAQ: AVGO) has been an outstanding investment over the past three years, as shares of the semiconductor giant have shot up an impressive 240% during this time and outpaced the 27% gains clocked by the PHLX Semiconductor Sector index over the same period.