Forward Valuation Pushes Nvidia as the Better Buy in AI-Chip Race

The Motley Fool weighs Broadcom (AVGO) and Nvidia (NVDA) after their earnings, noting Broadcom’s AI semiconductor division surged 221% year over year to $16.7B while Nvidia’s data-center revenue rose 117% to $89B and total revenue grew 106% YoY. Although Broadcom is gaining with ASICs for hyperscalers, Nvidia still dominates GPUs; however, on forward earnings valuation Nvidia appears cheaper than Broadcom, with both staying below 20x consensus next-year earnings. Using a ~30x forward-earnings fair value, Nvidia could double while Broadcom could rise over 50%, leading the author to conclude Nvidia is the better buy on valuation, even as Broadcom remains attractive amid its AI-chip ramp.