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

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.

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.