Let’s see how these two semiconductor stocks<\/a> compare and which is the better buy.<\/p>\n Nvidia recently reported earnings for the first quarter of its 2027 fiscal year, which ended April 26. As usual, it was a blockbuster quarter, with revenue surging 85% year over year to $81.6 billion. Data center revenue jumped 92% to $75.2 billion.<\/p>\n In March, Broadcom reported earnings for the first quarter of its fiscal 2026, which ended Feb. 1. The results were impressive, albeit not as explosive. Revenue increased 29% year over year to $19.3 billion, but AI revenue specifically was up 106% to $8.4 billion.<\/p>\n Sales favor Nvidia, and it’s also much cheaper, trading at 24 times forward earnings. Broadcom trades at 39 times forward earnings — its share price increased 40% over the last three months, and its valuation has arguably gotten stretched.<\/p>\n However, Broadcom is also earlier in its AI growth curve, and earnings could ramp up quickly from here. Management believes revenue from just AI chips could reach $100 billion in 2027.<\/p>\n The bull case for each chipmaker <\/p>\n Although the AI chip market has gotten more competitive, Nvidia remains the clear leader. Nvidia GPUs are the default choice for AI companies<\/a>, and its CUDA software helps keep customers on its platform. Sovereign AI has also become a significant revenue source — Nvidia made more than $30 billion from it in 2026.<\/p>\n Broadcom is leading an increasingly important part of the market: custom silicon. All the largest hyperscalers now develop their own custom chips, called ASICs, and two of them (Alphabet and Meta Platforms) use Broadcom as a design partner.<\/p>\n Bloomberg Intelligence forecasts a 27% compound annual growth rate (CAGR) for the custom ASIC market through 2033, compared to a 16% CAGR for AI accelerator chips as a whole. Broadcom is the chipmaker better equipped to capitalize on that shift.<\/p>\n Is Nvidia or Broadcom the better buy? <\/p>\n Nvidia is the safer pick, as it earns more, trades at a lower valuation, and generates massive free cash flow (FCF) — $97 billion in its 2026 fiscal year. Broadcom is better if you’re looking for growth and don’t mind taking on more risk, given its hyperscaler partnerships and position as the top custom chipmaker.<\/p>\n They’re both good investments, and it doesn’t need to be an either-or proposition. If you’re bullish on AI, it makes sense to own Nvidia and Broadcom. Which one you prioritize depends on whether you want more safety with Nvidia or more growth potential with Broadcom.<\/p>\n Should you buy stock in Nvidia right now? <\/p>\n Before you buy stock in\u00a0Nvidia, consider this:<\/p>\n The Motley Fool\u00a0Stock Advisor\u00a0analyst team just identified what they believe are the\u00a010 best stocks<\/a>\u00a0for investors to buy now\u2026 and\u00a0Nvidia\u00a0wasn\u2019t one of them.\u00a0The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years.<\/p>\n Consider when\u00a0Netflix\u00a0made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $462,983!*\u00a0Or\u00a0when\u00a0Nvidia\u00a0made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $1,375,447!*<\/p>\n That performance is why people listen. With a track record of\u00a0beating the S&P 500 by nearly 5x,\u00a0Stock Advisor\u00a0offers a distinct advantage. Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built for the long haul.<\/p>\n See the 10 stocks \u00bb<\/a><\/p>\n *Stock Advisor returns as of June 3, 2026. <\/p>\n Lyle Daly<\/a> has positions in Alphabet, Broadcom, Meta Platforms, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Broadcom, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy<\/a>.<\/p>\n![\"The](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/06\/66e805d5e2610e8fc88bbcebfd133f54.jpeg\")
Image source: Nvidia. Comparing the numbers <\/p>\n