Investing in chip stocks like Nvidia, AMD, and Broadcom has been lucrative due to their fabless design model with high margins. Nvidia dominates the market with GPUs for AI computing, while AMD offers competitive CPUs and GPUs. Broadcom focuses on custom AI accelerator chips for specific workloads, with significant growth potential.

Nvidia is expected to see 52% revenue growth in fiscal 2027, trading at 24 times earnings. AMD projects 32% revenue growth in 2026 but trades at 40 times earnings. Broadcom’s AI semiconductor revenue is set to double year over year in Q1, with analysts expecting 52% growth for fiscal 2026.

In the battle of AMD versus Nvidia, Nvidia appears to be the better investment, given its growth potential and lower valuation. However, Broadcom’s custom AI chips may outperform expectations, making it a competitive option. Diversifying investments between Nvidia and Broadcom could be a wise strategy for 2026.

Read more at Yahoo Finance: What’s the Best AI Chip Stock to Own for 2026