By Manali Pradhan, CFA
Publication Date: 2025-12-10 14:00:00
Nvidia appears to be a better pick than Broadcom, based on impressive revenue visibility and a cheaper valuation.
Broadcom‘s (AVGO +1.29%) shares have gained over 132% in the past year, driven by explosive demand for artificial intelligence (AI)-powered networking solutions and custom AI chips. The VMware acquisition is also helping transition its revenue mix toward a higher-margin software business.
Yet, despite the business momentum, the stock is expensive. With shares trading at about 41 times forward earnings, a significant portion of the upside is already priced in, leaving very little room for error.
Image source: Getty Images.
However, AI leader Nvidia (NVDA 0.39%) is now trading at just 24.3 times forward earnings. Here’s why Nvidia can prove to be a better pick in December 2025.
Multiple growth catalysts
Nvidia’s valuation is backed exceptionally well by its robust execution capabilities and stellar financial performance. In the latest period (third quarter of fiscal…
