Which Is a Better Investment, Broadcom Inc or NVIDIA Corporation Stock?

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Sifting through countless of stocks in the Semiconductors & Semiconductor Equipment industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Broadcom Inc or NVIDIA Corp because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Broadcom Inc and NVIDIA Corp compare based on key financial metrics to determine which better meets your investment needs.

About Broadcom Inc and NVIDIA Corp

Broadcom Inc. designs, develops, and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates in two segments, Semiconductor Solutions and Infrastructure Software. It provides set-top box system-on-chips (SoCs); cable, digital subscriber line, and passive optical networking central office/consumer premise equipment SoCs; wireless local area network access point SoCs; Ethernet switching and routing custom silicon solutions; serializer/deserializer application specific integrated circuits; optical and copper, and physical layer devices; and fiber optic components and RF semiconductor devices. The company also offers RF front end modules and filter; Wi-Fi, Bluetooth, and global positioning system/global navigation satellite system SoCs; custom touch controllers; inductive charging; attached small computer system interface, and redundant array of independent disks controllers and adapters; peripheral component interconnect express; fiber channel host bus adapters; read channel based SoCs; custom flash controllers; preamplifiers; optocouplers, industrial fiber optics, and motion control encoders and subsystems; light emitting diode, ethernet PHYs, switch ICs, and camera microcontrollers. Its products are used in various applications, including enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Broadcom Inc. was founded in 1961 and is headquartered in Palo Alto, California.

NVIDIA Corporation provides graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU or vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building and operating metaverse and 3D internet applications. The Compute & Networking segment comprises Data Center computing platforms and end-to-end networking platforms, including Quantum for InfiniBand and Spectrum for Ethernet; NVIDIA DRIVE automated-driving platform and automotive development agreements; Jetson robotics and other embedded platforms; NVIDIA AI Enterprise and other software; and DGX Cloud software and services. The company’s products are used in gaming, professional visualization, data center, and automotive markets. It sells its products to original equipment manufacturers, original device manufacturers, system integrators and distributors, independent software vendors, cloud service providers, consumer internet companies, add-in board manufacturers, distributors, automotive manufacturers and tier-1 automotive suppliers, and other ecosystem participants. NVIDIA Corporation was incorporated in 1993 and is headquartered in Santa Clara, California.

Latest Semiconductors & Semiconductor Equipment and Broadcom Inc, NVIDIA Corp Stock News

As of October 18, 2024, Broadcom Inc had a $840.2 billion market capitalization, compared to the Semiconductors & Semiconductor Equipment median of $2.4 million. Broadcom Inc’s stock is NA in 2024, NA in the previous five trading days and up 102.8% in the past year.

Currently, Broadcom Inc’s price-earnings ratio is 152.2. Broadcom Inc’s trailing 12-month revenue is $46.8 billion with a 10.9% net profit margin. Year-over-year quarterly sales growth most recently was 47.3%. Analysts expect adjusted earnings to reach $4.847 per share for the current fiscal year. Broadcom Inc currently has a 1.2% dividend yield.

Currently, NVIDIA Corp’s price-earnings ratio is 64.7. NVIDIA Corp’s trailing 12-month revenue is $96.3 billion with a 55.0% net profit margin. Year-over-year quarterly sales growth most recently was 122.4%. Analysts expect adjusted earnings to reach $2.844 per share for the current fiscal year. NVIDIA Corp does not currently pay a dividend.

How We Compare Broadcom Inc and NVIDIA Corp Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Broadcom Inc and NVIDIA Corp’s stock grades to see how they measure up against one another.

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