Consider investing in Broadcom over Nvidia for strong AI growth potential and historic performance

From Nasdaq: 2024-10-17 09:10:00

Nvidia’s stock has soared over 2,500% in the past five years, with triple-digit earnings growth each quarter. However, investors may want to consider Broadcom (AVGO), a networking company showing strong AI growth potential. Broadcom’s AI revenue is growing, expected to hit $12 billion this year, driven by demand from hyperscalers.

Broadcom’s recent acquisition of VMWare offers further growth opportunities. The VMWare Cloud Foundation is gaining traction, helping Broadcom exceed profitability goals. With a 10-for-1 stock split and a reasonable valuation, Broadcom may offer better investment potential compared to Nvidia, although Nvidia’s continued innovation may keep it a strong contender.

The Motley Fool Stock Advisor team has identified 10 best stocks to buy now, excluding Broadcom. However, historical returns of previous stock recommendations show significant potential gains. Investors may want to consider both Broadcom and Nvidia for their growth stories, with potential for long-term returns.

Investors considering Broadcom should weigh the AI growth prospects and VMWare acquisition against historical stock performance and analyst recommendations. Nvidia’s long-term performance and innovation-driven growth should also be considered. Ultimately, both stocks offer growth potential, and a diversified portfolio may benefit from exposure to both companies.



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