From Nasdaq: 2025-04-11 15:00:00

Advancements in artificial intelligence have made NVIDIA Corporation a favorite on Wall Street, while Broadcom Inc.’s share repurchase plan and focus on AI have pleased income-oriented investors. The recent trade war has caused market turmoil, with both NVIDIA and Broadcom stocks declining. However, this presents an opportunity to buy quality stocks at a discounted price for long-term gains.

NVIDIA leads the GPU market with over 80% share, giving them a competitive edge. Demand for their new Blackwell chips is high among tech firms due to energy efficiency. NVIDIA is well-positioned to benefit from the increase in AI data center spending, with top cloud computing stocks acquiring GPUs.

Broadcom expects demand for its custom AI accelerator to rise, projecting a market size of $60-90 billion by 2027. Their XPUs can outperform NVIDIA’s GPUs at a more affordable cost. Developing a 2-nanometer AI XPU and strong demand for ASICs supporting AI and machine learning showcase Broadcom’s potential.

When comparing NVIDIA and Broadcom, NVIDIA appears to be a better long-term choice due to their higher net profit margin and return on equity. However, Broadcom has an advantage in the short term as a solid dividend payer, increasing dividends 6 times in the past five years with a healthy payout ratio.

Zacks Investment Research names a top semiconductor stock with significant growth potential in the AI, Machine Learning, and IoT sectors. The global semiconductor manufacturing market is projected to expand from $452 billion in 2021 to $803 billion by 2028. Explore this stock for free to capitalize on the booming demand for semiconductor technology.



Read more at Nasdaq: Which AI Stock, NVIDIA or Broadcom, Is the Better Bargain to Buy?