AVGO vs NVDA Stock Comparison 2026: Broadcom vs Nvidia: AI Score, Valuation, Performance and Upside
Broadcom and Nvidia are both critical AI semiconductor companies but with different strategies. Nvidia builds general-purpose AI GPUs sold to all customers with CUDA software lock-in, and reported $75B in quarterly data center revenue in fiscal Q1 2027. Broadcom builds custom ASICs (XPUs) designed specifically for Google and Meta's proprietary AI infrastructure, plus networking chips for AI data centers, and guided AI semiconductor revenue to roughly $56B for fiscal 2026. Nvidia dominates AI training at far larger scale; Broadcom captures custom AI inference silicon that hyperscalers prefer for cost efficiency, growing off a smaller base.
AVGO vs NVDA is diversified semiconductor and software infrastructure including custom hyperscaler AI ASICs and VMware enterprise software (Broadcom) versus the dominant general-purpose AI GPU platform with CUDA software ecosystem lock-in and 80%+ market share (Nvidia) — Broadcom's diversification and software income vs Nvidia's AI concentration and extraordinary GPU growth.
NVDA holds the edge across 5 of 5 key metrics in this comparison. NVDA leads on both 1-year return (+25.81%) and forward P/E quality (14.21x vs 18.67x for AVGO), a relatively favorable combination of momentum and valuation. NVDA leads on both revenue growth (105.90%) and operating margin (66.24%), suggesting a stronger fundamental setup on both dimensions. Analyst consensus implies similar upside for both: +46.92% for AVGO and +48.66% for NVDA.
Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.
- prefer diversified semiconductor plus enterprise software exposure — VMware's recurring revenue provides earnings stability alongside AI chip growth
- value Broadcom's custom ASIC relationships with Google and Meta as structurally differentiated AI revenue with deep hyperscaler switching costs
- want AI semiconductor exposure with lower valuation multiples than Nvidia and more business line diversification across networking, wireless, and software
- are comfortable with VMware customer backlash risk, two-hyperscaler concentration in custom AI chips, and smaller AI chip revenue scale than Nvidia
- prefer maximum concentration in the AI GPU platform with 80%+ market share and CUDA developer ecosystem creating durable software lock-in
- value Nvidia's general-purpose AI hardware that serves all hyperscalers, enterprises, and researchers — far broader customer base than Broadcom's custom ASICs
- want the highest revenue growth rate exposure to AI infrastructure buildout — Nvidia is growing faster than Broadcom's AI chip segment
- are comfortable with Nvidia's extreme valuation, China export control headwinds, and hyperscaler custom chip competition gradually reducing GPU TAM
| Metric | AVGO | NVDA |
|---|---|---|
| AI scorei | 76.6 | 87.4 |
| AI ranki | #19 | #3 |
| Latest closei | $357.61 | $222.27 |
| 1M returni | -2.94% | +3.52% |
| 6M returni | +15.17% | +28.70% |
| 1Y returni | +3.67% | +25.81% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | AVGO | NVDA |
|---|---|---|
| 1Y ago | $10.56K (+5.6%) started 2025-09-22 | $12.11K (+21.1%) started 2025-09-22 |
| 5Y ago | $83.55K (+735.5%) started 2021-09-22 | $101.68K (+916.8%) started 2021-09-22 |
| 10Y ago | $363.33K (+3533.3%) started 2016-09-22 | $1.41M (+14029.3%) started 2016-09-22 |
Hypothetical — past performance does not guarantee future results.
| Metric | AVGO | NVDA |
|---|---|---|
| Market capi | $1.73T | $5.25T |
| Trailing P/Ei | 46.05 | 27.47 |
| Forward P/Ei | 18.67 | 14.21 |
| Price/Salesi | N/A | 23.66 |
| EV/Revenuei | 19.79 | 17.23 |
| Analyst targeti | $531.85 | $323.42 |
| Target upsidei | +46.92% | +48.66% |
| Metric | AVGO | NVDA |
|---|---|---|
| Revenue growthi | 85.50% | 105.90% |
| Earnings growthi | 215.30% | 127.80% |
| EPS growthi | +215.30% | +127.80% |
| FCF margini | +34.34% | +13.80% |
| Operating margini | 54.31% | 66.24% |
| Profit margini | 42.94% | 63.66% |
| ROIC proxyi | 44.25% | 117.21% |
| Return on equityi | 44.25% | 117.21% |
| Dividend yieldi | 0.72% | 0.46% |
| Payout ratioi | 32.40% | 3.54% |
| Dividend growth streaki | No increase yet | No increase yet |
| Betai | 1.46 | 2.21 |
| Debt/equityi | 59.60 | 16.97 |
| Current ratioi | 2.50 | 4.59 |
| Quick ratioi | 2.15 | 2.92 |
Over the past year, AVGO and NVDA have moved moderately in the same direction (correlation of 0.53), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | AVGO | NVDA |
|---|---|---|---|
| 1Y | Growthi | +5.56% | +21.06% |
| CAGRi | +5.58% | +21.16% | |
| Volatilityi | 46.41% | 37.81% | |
| Sharpe ratioi | 0.25 | 0.58 | |
| Sortino ratioi | 0.36 | 0.86 | |
| Max drawdowni | 29.55% | 20.22% | |
| Current drawdowni | 25.74% | 5.71% | |
| Avg drawdowni | 13.81% | 9.06% | |
| Ulcer Indexi | 16.49% | 10.22% | |
| Max daily dropi | 12.59% | 6.20% | |
| Max wkly dropi | 22.35% | 10.72% | |
| 5Y | Growthi | +671.51% | +914.94% |
| CAGRi | +50.51% | +59.00% | |
| Volatilityi | 44.37% | 52.02% | |
| Sharpe ratioi | 1.04 | 1.07 | |
| Sortino ratioi | 1.64 | 1.65 | |
| Max drawdowni | 41.15% | 66.34% | |
| Current drawdowni | 25.74% | 5.71% | |
| Avg drawdowni | 10.61% | 16.76% | |
| Ulcer Indexi | 13.87% | 24.21% | |
| Max daily dropi | 17.40% | 16.97% | |
| Max wkly dropi | 22.35% | 22.20% | |
| 10Y | Growthi | +2628.20% | +13799.27% |
| CAGRi | +39.20% | +63.82% | |
| Volatilityi | 39.90% | 50.06% | |
| Sharpe ratioi | 0.92 | 1.15 | |
| Sortino ratioi | 1.37 | 1.75 | |
| Max drawdowni | 48.30% | 66.34% | |
| Current drawdowni | 25.74% | 5.71% | |
| Avg drawdowni | 8.63% | 15.49% | |
| Ulcer Indexi | 11.93% | 22.78% | |
| Max daily dropi | 19.91% | 18.76% | |
| Max wkly dropi | 31.75% | 28.36% |
| Category | AVGO | NVDA |
|---|---|---|
| Company | Broadcom Inc. | NVIDIA Corporation |
| Sector | Technology | Technology |
| Industry | Semiconductors | Semiconductors |
| Core business | Broadcom is a diversified semiconductor and infrastructure software company. In semiconductors, Broadcom makes networking chips (Tomahawk Ethernet switches), custom AI ASICs (XPUs) designed for Google TPU and Meta MTIA, and wireless chips for Apple iPhones. In software, Broadcom acquired VMware in 2023 — VMware's virtualization software serves enterprise data centers and represents a major recurring revenue stream. In fiscal Q2 2026 (reported June 3, 2026), Broadcom posted revenue of $22.19B (+48% YoY), with AI semiconductor revenue of $10.8B (+143% YoY) and infrastructure software revenue of $7.18B (+9% YoY); the company guided Q3 AI semiconductor revenue to $16.0B (+200%+ YoY) and full fiscal-year 2026 AI semiconductor revenue to roughly $56B (+180% from fiscal 2025). | Nvidia designs AI GPUs (H100, B200, B300) that are the de facto standard for training large language models and running AI inference at scale. Nvidia's CUDA software ecosystem with 4M+ developers creates software lock-in that makes Nvidia GPUs functionally irreplaceable for most AI workloads regardless of competing silicon. In fiscal Q1 2027 (reported May 20, 2026), Nvidia posted total revenue of $81.6B (+85% YoY, +20% QoQ) with data center revenue of $75B (+92% YoY), driven by the fastest Blackwell product ramp in company history; the company guided fiscal Q2 2027 revenue to roughly $91.0B, with results due August 26, 2026. |
| Investor focus | Investors track Broadcom's AI semiconductor revenue (custom XPU chips for Google and Meta), VMware integration progress and revenue conversion to subscription, and networking chip content growth in AI data centers. | Investors track data center GPU revenue, Blackwell GPU generation adoption, CUDA developer ecosystem growth, and the pace at which hyperscalers deploy custom AI chips (Broadcom/Google TPU, Amazon Trainium) as an alternative to Nvidia. |
- Custom ASIC (XPU) design for Google TPU and Meta MTIA creates deep hyperscaler relationships — these chips are designed specifically for one customer's AI workload, creating durable, switching-cost-protected revenue
- VMware acquisition gives Broadcom roughly $28B+ in annualized recurring infrastructure software revenue ($7.18B in Q2 FY2026 alone) with high switching costs — enterprises cannot easily exit VMware infrastructure
- Networking leadership (Tomahawk switches, Jericho routers) means Broadcom captures AI data center traffic from both compute and networking — every AI cluster needs Broadcom's networking chips
- 80%+ AI accelerator market share with CUDA software moat — Nvidia's GPU dominance in AI training is reinforced by the 4M+ developer ecosystem that makes alternative hardware platforms difficult to adopt
- Blackwell GPU architecture delivers 4–5x performance improvement per generation — consistent compute improvement keeps Nvidia's GPUs ahead of custom ASIC alternatives for general AI workloads
- Full-stack AI infrastructure (GPU + NVLink networking + CUDA software) creates a complete AI computing platform that custom ASICs cannot replicate
- Custom ASIC business depends on Google and Meta maintaining or growing their AI chip orders — concentration in two hyperscalers creates volume risk
- VMware price increases post-acquisition have driven some customer backlash and competitive evaluations — enterprises considering Nutanix or OpenShift alternatives
- Broadcom's AI chip revenue is growing rapidly but its ~$16B quarterly run rate is still well behind Nvidia's ~$75B quarterly data center business — comparison with Nvidia requires acknowledging the scale difference
- Google (Broadcom TPU), Amazon (Trainium), Meta (MTIA) custom ASICs all chip away at Nvidia's data center GPU TAM — as hyperscalers mature their own AI chips, Nvidia's share of hyperscaler AI compute may decline
- Export controls limit Nvidia's ability to sell H100/B200 AI GPUs to China — a significant revenue loss
- Extreme valuation requires continued exceptional growth at scale that is increasingly difficult to maintain
AVGO vs NVDA: Which AI Semiconductor Stock Is the Better Buy?
On scale, Nvidia is far larger: fiscal Q1 2027 data center revenue of $75B (+92% YoY) dwarfs Broadcom's ~$16B quarterly AI semiconductor run rate. But scale isn't the whole story — Broadcom's AI semiconductor revenue is compounding faster off a smaller base (guided to +200%+ YoY in fiscal Q3 2026 and roughly $56B, +180%, for full fiscal 2026), while Nvidia's growth, though still exceptional, has begun to moderate from its earlier triple-digit pace.
Wall Street's price targets reflect both the scale gap and the growth-vs-diversification tradeoff: Broadcom carries an average analyst price target near $528 (about 26% implied upside, 40 buy ratings and 0 sell ratings among 48 analysts), while Nvidia's average target sits closer to $303–$319 (roughly 39–43% implied upside across 61–79 analysts). Both carry Strong Buy consensus ratings.
Broadcom's VMware software segment ($7.18B in Q2 FY2026, +9% YoY) and networking chip business give it earnings diversification that Nvidia — almost entirely dependent on AI GPU demand — does not have. Nvidia's CUDA software moat and full-stack AI platform, however, make it structurally difficult for any competitor, including Broadcom's custom ASICs, to displace for general-purpose AI training.
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