Nvidia is a popular investment in the AI sector due to its GPUs, but they come at a premium cost for hyperscalers. Some are turning to Broadcom for alternative AI computing units, as Broadcom’s strategy is proving successful in customization. Both companies are expected to grow at a rate of 52%, with Nvidia having a higher revenue.

Nvidia’s GPUs offer flexibility for a variety of tasks, while Broadcom’s custom ASICs are designed specifically for clients’ needs, eliminating unnecessary features and reducing costs. Broadcom’s partnerships, including with Google’s TPU, show promise for future growth in the AI market.

Analysts expect Nvidia and Broadcom to grow at the same rate, but Nvidia’s revenue and growth despite competition make it a more impressive investment. Broadcom stock trades at a higher multiple than Nvidia, indicating a premium for ownership. Nvidia is still seen as the leading AI stock to own currently.

Consider diversifying with both Nvidia and Broadcom stocks to hedge against industry shifts. The Motley Fool’s analyst team has identified 10 top stocks to buy now, excluding Nvidia, for potential high returns. Stock Advisor has a history of market-crushing outperformance compared to the S&P 500.

Keithen Drury holds positions in Alphabet, Broadcom, and Nvidia. The Motley Fool recommends and has positions in Alphabet and Nvidia, and recommends Broadcom. The article originally published by The Motley Fool compares the better AI stock between Broadcom and Nvidia.

Read more at Yahoo Finance: Better Artificial Intelligence (AI) Stock: Broadcom vs. Nvidia