By Patrick Sanders
Publication Date: 2026-10-14 15:00:00
If you’re looking for a company that’s benefiting from the massive spending on artificial intelligence (AI), it’s hard to go wrong with Nvidia (NVDA -1.86%) or Broadcom (AVGO -1.75%).
Both are making a fortune selling the technology needed to build and operate AI data centers. And with major technology companies continuing to pour money into AI infrastructure, there’s reason to believe both stocks have plenty of room to grow.
But if I could own only one of these companies for the next five years, I’d choose Nvidia. That’s why I continue to hold my shares. Broadcom has built an outstanding business around custom AI processors and networking equipment. But Nvidia has a few advantages that I believe make it the better long-term investment.
Image source: The Motley Fool.
Nvidia is still the king of AI computing
There’s something remarkable about Nvidia’s growth. Despite becoming the world’s most valuable company, the chipmaker is still posting revenue growth that would be impressive for a business a fraction of its size.
Its fiscal 2027 second-quarter results showed revenue jumping 106% from a year ago to $96.2 billion, while net income increased 126% to $59.7 billion. Its data center business alone generated $89 billion in revenue, up 117%. And Nvidia expects another big quarter. Management projected fiscal third-quarter revenue of $108 billion, plus or minus 2%.
“The surge in AI demand is driving a global infrastructure build-out, supported by an expanding and diverse set…
