There's no shortage of uncertainties surrounding productivity gains to be had from the AI boom. Will embracing next-generation large language models (LLMs) actually lead to an earnings boost? And when will such a boost be on the horizon?

The Vanguard U.S. Momentum Factor ETF ( VFMO 0.09%) narrowly beat the S&P 500 in 2024. But it is already up 6.3% year to date as of Jan. 26, outperforming the S&P 500's 3.7% gain.

The Nasdaq & S&P 500 fell after Chinese startup DeepSeek shows AI can be built cheaply, sparking fears AI spending will stall. The blue-chip Dow rose.

Meta and Tesla rise as Microsoft slumps, keeping US indices mixed. Investors await Apple and Amazon earnings while GDP and Fed policy weigh on sentiment.

The enthusiasm surrounding AI has already been driving the broader market rally since 2024. The S&P 500 gained 23.3% in 2024 after climbing 24.2% in 2023. The index jumped 53% in the last two years, recording its best performance since the 66% gain in 1997-98.

The S&P 500 ( ^GSPC 0.53%) delivered a return of 23% in 2024, which was more than double its average annual gain dating back to when it was established in 1957. However, had you invested in the Vanguard Information Technology ETF ( VGT 0.17%) instead, you would have earned a return of 32% for the year.

The S&P 500 and Nasdaq plunged at midday when Chinese artificial intelligence startup DeepSeek shook up the sector with a lower-cost large language model.

Shares of semiconductor giant Broadcom (AVGO) have almost doubled over the past year. Invest with Confidence: Follow TipRanks' Top Wall Street

Nvidia Corp, the poster child of the AI frenzy, sank 17 per cent on Monday and reported the biggest market-cap loss for a single stock in market history.

"The narrative on Monday was that the eye-watering sums spent on AI capex by mega-cap tech companies could be somewhat obsolete if a cheaper solution exists," analysts at BCA Research said in a note.

Broadcom stock was getting a much-needed boost early Thursday. The company looks set to benefit from greater use of its chip designs by Meta Platforms.Meta CEO Mark Zuckerberg pledged “hundreds of billions of dollars” of long-term investment in artificial-intelligence technology alongside the social-media company’s earnings report after the close of trading on Wednesday.

We recently published a list of 12 Safe Stocks to Buy for the Long Term in 2025. In this article, we are going to take a look at where Broadcom Inc. (NASDAQ:AVGO) stands against other safe stocks to buy for the long term in 2025.