Nvidia Stock vs. Broadcom Stock: Wall Street Says This AI Stock Is the Best Buy
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By Trevor Jennewine – Dec 14, 2025 at 4:12AM ESTKey PointsNvidia and Broadcom are key suppliers of artificial intelligence infrastructure, but Wall Street says Nvidia is the better stock to buy right now.Nvidia GPUs are the fastest AI accelerators on the market, and its CUDA platform is the most robust suite of software tools for accelerated computing applications.Broadcom is the leader in high-end networking chips and custom AI accelerators, and its clientele includes Google, Meta Platforms, OpenAI, and Anthropic.These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: NVDANvidiaMarket Cap$4.3TToday's Changeangle-down(-3.30%) $5.97Current Price$174.96Price as of December 12, 2025 at 3:59 PM ETWhile Nvidia and Broadcom are both benefiting from the AI boom, Wall Street sees one stock as a much better buy.Semiconductor companies Nvidia (NVDA 3.30%) and Broadcom (AVGO 11.58%) are leading suppliers of artificial intelligence (AI) accelerators. Nvidia dominates the market with its graphics processing units, but Broadcom is gaining market share with custom alternatives. Overall, Wall Street thinks both stocks are undervalued, but analysts view Nvidia as a much better buy at current prices. Among 70 analysts, Nvidia has a median target price of $250 per share. That implies 43% upside from its current share price of $175. And the highest target price of $352 per share implies 101% upside. Among 50 analysts, Broadcom has a median target price of $450 per share. That implies 25% upside from its current share price of $360. The highest target price of $525 per share implies 46% upside. Here's what investors should know about these semiconductor stocks. Image source: Getty Images. Nvidia: 43% upside implied by the median target price The investment thesis for Nvidia centers on its status as the industry standard in artificial intelligence (AI) infrastructure. The company is best known for its graphics processing units (GPUs), chips otherwise referred to as AI accelerators. Nvidia holds over 90% market share in data center GPUs, but it's also a leading supplier of generative AI networking equipment. Nvidia has several important competitive advantages. First, it builds rack-scale systems that integrate GPUs, central processing units (CPUs), and networking to provide customers with a turnkey solution for data center infrastructure. Second, Nvidia systems consistently outperform products from competing chipmakers when benchmarked in an objective setting.Advertisement Third, Nvidia supports its GPUs with an unparalleled software ecosystem called CUDA. It comprises code libraries, frameworks, and pretrained models that help developers write applications across disciplines like predictive analytics, computer vision, conversational intelligence, and autonomous machines. CUDA runs only on Nvidia GPUs. Nvidia recently got good news from the Trump administration. The company will be allowed to sell its H200 GPUs in China, the second-largest artificial intelligence market in the world. Increasingly strict export curbs have gradually locked Nvidia out of China, such that its market share has fallen from 95% to zero in the last few years. The new policy will give Nvidia a chance to reclaim its leadership position. Wall Street expects Nvidia's earnings to increase at 37% annually over the next three years. That makes the current valuation of 43 times earnings look reasonable. I think Nvidia stock is a must-own for most investors eager to capitalize on the AI revolution, and now is a good time to buy a few shares. ExpandNASDAQ: NVDANvidiaToday's Change(-3.30%) $-5.97Current Price$174.96Key Data PointsMarket Cap$4.3TDay's Range$174.62 - $182.8152wk Range$86.62 - $212.19Volume6.2MAvg Vol191MGross Margin70.05%Dividend Yield0.02% Broadcom: 25% upside implied by the median target price The investment thesis for Broadcom centers on its strong market presence in Ethernet networking chips and application-specific integrated circuits (ASICs). The company builds the fastest Ethernet switching and routing chips, and it has more than 80% market share. Demand for high-speed networking chips should increase as the AI infrastructure buildout continues. Broadcom is also the leading supplier of custom artificial intelligence accelerators, a type of ASIC purpose-built for training and inference workloads. The company develops custom silicon for five hyperscale customers -- Alphabet's Google, Meta Platforms, TikTok parent ByteDance, OpenAI, and Anthropic -- and it has other potential customers in the pipeline, including Apple and xAI. Importantly, while ASICs themselves are often cheaper than Nvidia GPUs, system-level costs tend to be higher because they lack prebuilt software tools (so developers must build them from scratch), and they typically use costly optical interconnects rather than less expensive copper cables. That custom silicon often comes with a higher total cost of ownership, meaning Broadcom is likely a relatively small threat to Nvidia. Indeed, Morgan Stanley analysts estimate that AI accelerator sales will increase at 34% annually through 2030, at which point Nvidia GPUs will still account for 85% of revenue. The remaining 15% market share will be divided among ASIC producers, with Broadcom likely to be the biggest winner. Wall Street expects Broadcom's earnings to grow at 30% annually in the next three years. That makes the current valuation of 92 times earnings look expensive. Those numbers give a price-to-earnings-to-growth (PEG) ratio of 3, a significant premium to Nvidia's PEG ratio of 1.1. Both companies will continue to benefit from the AI revolution, but Nvidia is the more attractive investment at current prices.About the AuthorTrevor Jennewine is a contributing Motley Fool stock market analyst covering technology, cryptocurrency, and investment planning. Prior to The Motley Fool, Trevor managed several pharmacies. He holds a doctor of pharmacy degree from Oregon State University, a master’s degree in business administration from Miami University, and a bachelor’s degree in biology from Miami University.TMFphoenix12X@tjennewine1Read NextDec 14, 2025 •By Anthony Di PizioBetter Buy in 2026: Nvidia Stock or Bitcoin?Dec 14, 2025 •By Danny Vena, CPAPrediction: 1 Unstoppable Stock to Buy Before It Soars 369%, According to a Certain Wall Street AnalystDec 14, 2025 •By Geoffrey SeilerCould Nvidia Be the Most Undervalued Stock in AI Right Now and Be Ready to Soar in 2026?Dec 13, 2025 •By Will HealyNvidia's AI Dominance Is Still Building. Could the Stock Go Even Higher?Dec 13, 2025 •By Keithen DruryMeet My Top 5 Artificial Intelligence (AI) Stocks for 2026Dec 13, 2025 •By Patrick SandersIs Nvidia's Valuation Justified as New Competitors Close the AI Gap?