By Geoffrey Seiler
Publication Date: 2026-02-21 00:00:00
Key Points
With spending for artificial intelligence (AI) infrastructure through the roof this year and only expected to grow in the coming years, Nvidia remains well-positioned. The company’s graphics processing units (GPUs) are the main chips used to power AI workloads, and it has a more than 90% market share in the GPU space.
The company has carved out a nice moat, particularly with training large language models (LLMs), due to its CUDA software program. Nvidia seeded CUDA into universities and research labs that were doing early work on AI, which has led to a generation of developers being trained on its platform and virtually all foundational AI code being written on its software.
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As the AI data center buildout continues, this helps ensure that Nvidia will be a nice winner. However, it’s not the stock I’d be buying to play this spending boom. Instead, I think Broadcom (NASDAQ: AVGO) is the better buy.
A networking and ASIC leader
With Broadcom, investors are getting exposure to two of the fastest-growing parts of AI infrastructure buildout: Networking and custom AI chips. Broadcom is a data center networking leader, where its Tomahawk Ethernet switches are the go-to option for large-scale data centers.
It also offers high-performance fiber optical interconnect solutions, digital…
