Broadcom vs. Nvidia: The AI Revolution Is Big Enough for Both. Here’s the Better Buy. | The Motley Fool

Nvidia (NVDA -1.29%) and Broadcom (AVGO -1.88%) are two of the largest and best-positioned semiconductor companies for the artificial intelligence age. The AI infrastructure market is expanding rapidly, with Gartner recently projecting it will hit nearly $2 trillion in 2027.

While Broadcom versus Nvidia is essentially a battle between off-the-shelf graphics processing units (GPUs) and custom AI application-specific integrated circuits (ASICs), the AI infrastructure market is more than big enough for both companies to be winners. However, let’s dig in to see which chip stock looks like the better buy today.

Nvidia

Nvidia has been the biggest AI infrastructure winner thus far, becoming the world’s largest company in the process. However, the stock still looks attractive, with big growth opportunities still in front of it, and it is trading at a forward P/E of only 14.5 times fiscal 2028 (ending January 2028) analyst estimates.

Today’s Change

(-1.29%) $-2.96

Current Price

$226.32

Key Data Points

Market Cap

$5.5TMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.

Day’s Range

$224.90 – $228.86

52wk Range

$164.27 – $243.37

Volume

1.4M

Avg Vol

119.6M

Gross Margin

74.67%

Dividend Yield

0.23%

The company remains the king of AI, with its GPUs still the primary chips powering AI workloads. It is particularly strong in the AI model training market, as its…