Nvidia or Broadcom: Which AI Stock To Bet On?

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Broadcom experienced an increase of 11% in the past day. In fact, AVGO stock has the potential to double from here. Check out our take on – AVGO Stock To $700 Amid Google Partnership?

You might feel inclined to purchase more shares, or perhaps you wish to cut back on your investment. However, there is a whole different viewpoint that you could be overlooking. Is there a more promising option? It appears that its counterpart, NVIDIA, offers you more. NVIDIA (NASDAQ: NVDA) stock demonstrates exceptional revenue growth during crucial periods, stronger profitability, and a relatively lower valuation compared to Broadcom (NASDAQ: AVGO) stock, indicating that investing in NVDA might be more advantageous for you.

  • NVDA’s revenue growth for the last quarter was 55.6%, while AVGO’s stood at 22.0%.
  • Moreover, its revenue growth for the last 12 months reached 71.6%, surpassing AVGO’s 28.0%.
  • NVDA also excels in profitability over both time frames – with a trailing twelve months (LTM) margin of 58.1% and a three-year average of 51.0%.

These distinctions become more pronounced when comparing the financials side by side. The table shows how AVGO’s fundamentals align against those of NVDA in terms of growth, margins, momentum, and valuation multiples.

Valuation & Performance Overview

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Explore comprehensive fundamentals on Buy or Sell NVDA Stock and Buy or Sell AVGO Stock. Below, we compare market returns and associated metrics over the years.

Historical Market Performance

Regardless of how strong the figures are, investing in stocks is never a simple journey. There are risks that must be taken into account. Read NVDA Dip Buyer Analyses and AVGO Dip Buyer Analyses to examine how these stocks have declined and bounced back in the past.

If you are still uncertain about AVGO or NVDA, consider a portfolio strategy.

Portfolios Outperform Individual Stock Selection

Single stocks can rise sharply or fall drastically, but one key factor remains: staying invested. A well-structured portfolio can assist you in remaining invested, achieving upside, and reducing the risks tied to any single stock.

The Trefis High Quality (HQ) Portfolio, comprising 30 stocks, has a proven history of significantly outperforming its benchmark, including all three: the S&P 500, S&P mid-cap, and Russell 2000 indices. What accounts for this? Collectively, HQ Portfolio stocks have generated superior returns with less risk in comparison to the benchmark index, resulting in a smoother experience, as illustrated by the HQ Portfolio performance metrics.