Nvidia vs. Broadcom: Which AI Chip Stock Is the Better Buy Right Now?
Written by Lyle Daly for The Motley Fool -> Nvidia earns much more revenue than Broadcom and trades at a cheaper valuation. The custom ASIC market is projected to grow at a faster rate than the artificial intelligence (AI) accelerator market, and Broadcom is the leading custom
Nvidia earns much more revenue than Broadcom and trades at a cheaper valuation.
The custom ASIC market is projected to grow at a faster rate than the artificial intelligence (AI) accelerator market, and Broadcom is the leading custom chipmaker.
Nvidia (NASDAQ: NVDA) and Broadcom (NASDAQ: AVGO) are the top artificial intelligence (AI) chipmakers by market cap, and both delivered record results in their most recent quarters.
Of the two, Broadcom has been the better investment in 2026 and over the last year, but Nvidia is the winner if you look further back. Its five-year and 10-year returns are much higher than Broadcom's.
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Let's see how these two semiconductor stocks compare and which is the better buy.
Nvidia recently reported earnings for the first quarter of its 2027 fiscal year, which ended April 26. As usual, it was a blockbuster quarter, with revenue surging 85% year over year to $81.6 billion. Data center revenue jumped 92% to $75.2 billion.
In March, Broadcom reported earnings for the first quarter of its fiscal 2026, which ended Feb. 1. The results were impressive, albeit not as explosive. Revenue increased 29% year over year to $19.3 billion, but AI revenue specifically was up 106% to $8.4 billion.
