This Tech Sector Stock Is Way Cheaper Than Broadcom
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By Manali Pradhan, CFA – Dec 10, 2025 at 9:00AMKey PointsNvidia is trading at a significantly cheaper forward earnings level compared to Broadcom.The company has visibility into $500 billion worth of Blackwell and Rubin orders through 2026.Nvidia has positioned itself as a key beneficiary of the multitrillion-dollar AI infrastructure buildout.These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: NVDANvidiaMarket Cap$4.5TToday's Changeangle-down(-0.42%) $0.79Current Price$184.19Price as of December 10, 2025 at 9:59 AM ETNvidia appears to be a better pick than Broadcom, based on impressive revenue visibility and a cheaper valuation.Broadcom's (AVGO 0.75%) shares have gained over 132% in the past year, driven by explosive demand for artificial intelligence (AI)-powered networking solutions and custom AI chips. The VMware acquisition is also helping transition its revenue mix toward a higher-margin software business. Yet, despite the business momentum, the stock is expensive. With shares trading at about 41 times forward earnings, a significant portion of the upside is already priced in, leaving very little room for error. Image source: Getty Images. However, AI leader Nvidia (NVDA 0.42%) is now trading at just 24.3 times forward earnings. Here's why Nvidia can prove to be a better pick in December 2025. Multiple growth catalysts Nvidia's valuation is backed exceptionally well by its robust execution capabilities and stellar financial performance. In the latest period (third quarter of fiscal 2026, ended Oct. 26), revenue was up 62% year over year to $57 billion, including data center revenue, which soared 66% to $51.2 billion. The company has provided an even stronger guidance for the fourth quarter, with revenue estimated to grow nearly 14% (at the midpoint sequentially), and high gross margins in the mid-70s. ExpandNASDAQ: NVDANvidiaToday's Change(-0.42%) $-0.79Current Price$184.19Key Data PointsMarket Cap$4495BDay's Range$183.68 - $185.4752wk Range$86.62 - $212.19Volume590KAvg Vol191MGross Margin70.05%Dividend Yield0.02% Management has cumulative revenue visibility of nearly $500 billion from shipments of its Blackwell and Rubin systems through 2025 and 2026. Around $150 billion in orders have already been shipped by the end of the third quarter. Hence, it's clear that Nvidia continues to benefit from the explosive demand of hyperscalers as they scale their GPU deployments for AI training and inference workloads.Advertisement Nvidia is committed to its annual product cadence (releasing new GPU architectures every year) and has built a market-leading AI technology stack. The company has announced plans to deploy 5 million GPUs in AI factories (large-scale facilities built to train and deploy AI models) and infrastructure projects, including cloud service providers, sovereigns, enterprises, model builders, and supercomputing centers across various regions. Hence, the company is positioned to capture a significant share of the $3 trillion to $4 trillion AI infrastructure buildout opportunity by 2030. Nvidia appears to be a better buy now.About the AuthorManali Pradhan, CFA, is a contributing Motley Fool stock market analyst covering technology, pharmaceuticals, medical devices, and industrial sectors. Manali brings prior experience as a healthcare analyst and team lead at Market Realist, a data equity analyst at Morgan Stanley, and a data analyst at Deloitte Financial Advisory Services. She holds a bachelor’s degree in computer engineering and a master’s in finance from Mumbai University.TMFManaBRead NextDec 10, 2025 •By Parkev Tatevosian, CFAFantastic News for Nvidia Stock Investors, as It Could Restart Sales to ChinaDec 10, 2025 •By Keithen DruryIs Palantir or Nvidia the Best AI Stock for 2026?Dec 10, 2025 •By Trevor JennewineNvidia Stock Investors Just Got Good (and Very Bad) News From President Donald TrumpDec 9, 2025 •By Adam SpataccoThe 3 Smartest Quantum Computing Stocks to Buy With $1,000 in 2026Dec 9, 2025 •By Leo SunThese 3 Dow Stocks Are Set to Soar in 2026 and BeyondDec 9, 2025 •By Johnny RiceNvidia Stock Price Slumped 12.6% in November. What's Next For The Artificial Intelligence (AI) Behemoth?