NVIDIA and Broadcom have recently announced 10-for-1 stock splits due to their surging stock prices driven by the demand for artificial intelligence. This results in both tech giants becoming attractive investments as the AI market is predicted to grow exponentially, potentially reaching $1 trillion by the end of the decade.
Nvidia is a leader in providing high-performance GPUs for AI tasks and is expanding into new AI fields such as sovereign AI. The company has seen significant profit growth due to the dominance of its chips in the AI market, and continues to promise annual chip performance updates.
On the other hand, Broadcom specializes in semiconductors and networking, particularly excelling in AI data centers. The company has experienced a 280% increase in AI revenue in the most recent quarter and is predicted to surpass $11 billion in AI revenue for the full year.
Both companies have seen their stock prices rise post-stock splits, making them more expensive investments. However, Broadcom presents as a better buying opportunity currently due to its more reasonable valuation and potential earnings growth from recent acquisitions, including VMware.
Investors looking to buy Broadcom may benefit from waiting for the stock split to purchase a smaller stake without relying on fractional shares. Post-split, the stock is expected to trade around $165, offering investors the opportunity to buy one share with that amount.
Overall, both Nvidia and Broadcom are attractive investments in the AI market, but Broadcom may be the better choice given its current valuation, earnings potential, and upcoming stock split. However, investors should also consider other stock recommendations and factors before making a decision.
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https://finance.yahoo.com/news/better-artificial-intelligence-ai-stock-093500960.html