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.

With shares in an overbought situation following their earnings, Broadcom stock was in need of a short-term “correction” that would allow the stock to rest and provide an opportunity for investors to “buy the dip” before advancing higher in January.

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

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.