From Nasdaq: 2025-04-21 18:00:00

Nvidia and Broadcom are leading the way in designing semiconductor chips for AI workloads, with Nvidia currently dominating the market. However, Broadcom is gaining momentum and is becoming a strong contender in the AI chip space. Investors are advised to consider which stock to buy during the current market sell-off. Nvidia’s GPUs have been widely used for AI tasks, while Broadcom helps develop custom AI chips called ASICs, which offer better performance and power efficiency. Broadcom has secured major customers like Alphabet, Meta Platforms, and OpenAI, with a projected market opportunity of $60-90 billion by 2027.

From a valuation perspective, Nvidia and Broadcom trade at similar forward P/E multiples, but Broadcom appears to have stronger growth prospects. While both companies are expected to see growth in the AI chip market, Broadcom’s custom chip business is poised for significant expansion. Investors are encouraged to consider investing in Broadcom given its substantial growth potential. The Motley Fool Stock Advisor team has identified the 10 best stocks to buy now, and Nvidia is not included in the list. The top 10 stocks recommended by Stock Advisor have historically produced substantial returns, outperforming the market significantly.

It is worth noting that Stock Advisor’s total average return is 792%, far exceeding the S&P 500’s return of 153%. Don’t miss out on the latest top 10 stock recommendations by joining Stock Advisor. The Motley Fool has positions in and recommends Alphabet, Apple, Meta Platforms, and Nvidia, while recommending Broadcom as well. Members of The Motley Fool’s board of directors have positions in Alphabet.



Read more at Nasdaq: Better AI Chip Stock: Nvidia vs. Broadcom