Broadcom

AVGO

Market cap $1.52T

NVIDIA and Broadcom both posted blockbuster AI-fueled quarters, but differences in growth, debt and valuation set one apart as the smarter buy.

Nvidia (NVDA) delivered strong earnings and guidance, but high expectations triggered a 'sell the news' reaction and ongoing valuation concerns. AI infrastructure demand remains robust, yet NVDA faces supply challenges and heightened market sensitivity to any potential shortfall.

Broadcom stock is on a downtrend despite bright growth prospects with earnings right around the corner. Ciena is also on the calendar.

Like a plant with water, sunlight, and fertilizer, you can make $10,000 grow over time with the right ingredients.

Nvidia ( NASDAQ:NVDA | NVDA Price Prediction ) delivered another blockbuster quarter, reporting fiscal fourth-quarter revenue and earnings that easily trounced Wall Street's expectations as demand for its advanced artificial intelligence (AI) accelerators remains white hot.

The three chip-making stocks tend to move in lockstep after Nvidia's earnings reports in recent years.

Broadcom stock (NASDAQ: AVGO) has had a rocky start to the year, with its stock currently down 4%. Despite a period of record-breaking demand for its AI-related hardware, the company is struggling against two primary headwinds: cooling investor sentiment and growing skepticism regarding long-term profitability.

Artificial intelligence chip designer Broadcom said that it expects to sell at least 1 million chips by 2027 based on its stacked design tech, an executive told Reuters on Wednesday.

Alphabet's shares rose 28.9% (and 65.5% for the year) on strength in the company's core businesses, as well as accelerating growth in Google Cloud and Other Bets. Taiwan Semiconductor contributed to performance during the quarter with shares up 9.0% and up 55.5% in 2025, driven by robust demand for AI chips. Broadcom is strategically positioned at the intersection of high-performance AI compute and networking infrastructure while also demonstrating disciplined execution in software.

I am downgrading Broadcom heading into the Q1 FY26 print, as the poor sentiment in tech may lead investors to panic sell the stock on any negative development. Specifically, I am concerned about the 67% adjusted EBITDA margin guided for Q1, given the fact that memory chip prices jumped recently. I am unsure if management anticipated the full magnitude of the hike in memory prices in their adjusted EBITDA margin guidance. Sequentially, this guidance implies only a 1ppt drop.