By Keithen Drury
Publication Date: 2026-01-31 22:35:00
Broadcom’s revenue growth is expected to be about the same as Nvidia’s.
The artificial intelligence AI realm is full of exciting investments, but none is more popular than Nvidia (NVDA 0.72%). Nvidia makes graphics processing units (GPUs), and these have been the most widely deployed computing units in the AI sector. However, Nvidia’s GPUs aren’t the cheapest option, and AI hypercalers have to pay a premium to deploy the best-in-class hardware.
Instead of using Nvidia’s products, some hyperscalers are starting to explore alternatives from Broadcom (AVGO +0.15%). Broadcom is taking a different path in designing AI computing units, and the strategy looks to be paying off for it.
But which is the better AI stock to invest in right now? Let’s take a look.
Image source: Getty Images.
Broadcom’s approach may steal some Nvidia market share
As mentioned above, Nvidia makes broad-purpose GPUs, which can be deployed in a wide variety of tasks. The flexibility of a GPU is necessary for tasks like AI model training, where it may see a wide variety of workloads and information come across. However, for tasks like inference, where the inputs and outputs are fairly standard, using a GPU may be a bit inefficient.
That opens the door to Broadcom, which makes custom AI chips for its clients. These are known as ASICs, or application-specific integrated circuits. ASICs are nothing new; they’ve been deployed in industry for a long time for specific roles. So, it should come as no surprise…
