{"id":261979,"date":"2026-02-01T04:27:10","date_gmt":"2026-02-01T04:27:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/261979\/"},"modified":"2026-02-01T04:27:10","modified_gmt":"2026-02-01T04:27:10","slug":"better-artificial-intelligence-ai-stock-broadcom-vs-nvidia","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/261979\/","title":{"rendered":"Better Artificial Intelligence (AI) Stock: Broadcom vs. Nvidia"},"content":{"rendered":"

Broadcom’s revenue growth is expected to be about the same as Nvidia’s.<\/p>\n

The artificial intelligence AI realm is full of exciting investments, but none is more popular than Nvidia (NVDA<\/a> 0.72%). Nvidia makes graphics processing units (GPUs)<\/a>, and these have been the most widely deployed computing units in the AI sector. However, Nvidia’s GPUs aren’t the cheapest option, and AI hypercalers have to pay a premium to deploy the best-in-class hardware.<\/p>\n

Instead of using Nvidia’s products, some hyperscalers are starting to explore alternatives from Broadcom (AVGO<\/a> +0.17%). Broadcom is taking a different path in designing AI computing units, and the strategy looks to be paying off for it.<\/p>\n

But which is the better AI stock to invest in right now? Let’s take a look.<\/p>\n

\"Two<\/p>\n

Image source: Getty Images.<\/p>\n

Broadcom’s approach may steal some Nvidia market share<\/p>\n

As mentioned above, Nvidia makes broad-purpose GPUs, which can be deployed in a wide variety of tasks. The flexibility of a GPU is necessary for tasks like AI model training, where it may see a wide variety of workloads and information come across. However, for tasks like inference, where the inputs and outputs are fairly standard, using a GPU may be a bit inefficient.<\/p>\n

That opens the door to Broadcom, which makes custom AI chips for its clients. These are known as ASICs, or application-specific integrated circuits. ASICs are nothing new; they’ve been deployed in industry for a long time for specific roles. So, it should come as no surprise that a company decided to start using them for artificial intelligence<\/a>. Instead of marketing broad computing capabilities, Broadcom partners directly with a specific client to make a chip specifically catered to their needs. This eliminates unnecessary features that drive the price tag of a GPU up, and only leaves the remaining elements that make it the right tool for the job.<\/p>\n

\"Broadcom<\/p>\n

Today’s Change<\/p>\n

(0.17%) $0.57<\/p>\n

Current Price<\/p>\n

$331.30<\/p>\n

Key Data Points<\/p>\n

Market Cap<\/p>\n

$1.6T<\/p>\n

Day’s Range<\/p>\n

$328.33 – $338.20<\/p>\n

52wk Range<\/p>\n

$138.10 – $414.61<\/p>\n

Volume<\/p>\n

28M<\/p>\n

Avg Vol<\/p>\n

30M<\/p>\n

Gross Margin<\/p>\n

64.71%<\/p>\n

Dividend Yield<\/p>\n

0.73%<\/p>\n

The most famous example of a computing unit that Broadcom has partnered with an AI hyperscaler to make is Google’s Tensor Processing Unit (TPU). The TPU has been Alphabet’s (GOOG<\/a> 0.04%) (GOOGL<\/a> 0.05%) secret weapon in catching up in the AI arms race, so it comes as no surprise that other companies are following in its footsteps. Many clients, including OpenAI, have announced a custom chip with Broadcom, and those are expected to start rolling out over the next few years, which could extend Broadcom’s growth for a while, but is that enough to warrant investing in it over Nvidia?<\/p>\n

Nvidia is still the king right now<\/p>\n

For Nvidia’s fiscal year 2027 (ending January 2027), Wall Street analysts expect 52% revenue growth from Nvidia. Considering Nvidia has a market cap<\/a> of about $4.5 trillion, that’s an unbelievable growth rate. Broadcom is expected to grow at the same pace, 52%, during its FY 2026 (ending early November 2026). Clearly, these two are about even in expectations, which is what makes Nvidia all the more impressive.<\/p>\n

\"Nvidia<\/p>\n

Today’s Change<\/p>\n

(-0.72%) $-1.39<\/p>\n

Current Price<\/p>\n

$191.12<\/p>\n

Key Data Points<\/p>\n

Market Cap<\/p>\n

$4.6T<\/p>\n

Day’s Range<\/p>\n

$189.47 – $194.49<\/p>\n

52wk Range<\/p>\n

$86.62 – $212.19<\/p>\n

Volume<\/p>\n

5.6M<\/p>\n

Avg Vol<\/p>\n

182M<\/p>\n

Gross Margin<\/p>\n

70.05%<\/p>\n

Dividend Yield<\/p>\n

0.02%<\/p>\n

It’s well known that the larger a company is, the harder it is to grow. During their respective fiscal years, analysts expect Nvidia’s revenue to total $323 billion while Broadcom’s is $133 billion. I’d give the nod to Nvidia in this aspect because Nvidia is growing so quickly despite rising competition, and its size is unheard of.<\/p>\n

Furthermore, the market is really excited about Broadcom’s prospects.<\/p>\n

\"AVGO<\/a><\/p>\n

Data by YCharts.<\/a><\/p>\n

Broadcom stock trades for 32.4 times forward earnings<\/a>. Nvidia trades for 24.6 times FY 2027 earnings, so you have to pay a decent premium to own Broadcom stock. <\/p>\n

So, is Broadcom the better AI stock to own? I’d say no. Nvidia is still the king right now.<\/a> However, I think Broadcom is a great stock to buy alongside Nvidia because it represents a different way to invest in AI. It’s impossible to tell which way the industry will shift over the next few years, and owning two of the leaders is a great way to ensure you have exposure to both potential winners. <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Broadcom’s revenue growth is expected to be about the same as Nvidia’s. The artificial intelligence AI realm is…\n","protected":false},"author":2,"featured_media":261980,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[365,363,364,111,139,69,145],"class_list":{"0":"post-261979","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-new-zealand","12":"tag-newzealand","13":"tag-nz","14":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/261979","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=261979"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/261979\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/261980"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=261979"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=261979"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=261979"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}