Place a forward price-to-earnings (P/E) multiple of 30 to 40 on $14.80 in fiscal 2027 EPS, and the stock could be worth between $445 and $600 a share by the end of 2026. While that multiple may seem high, it takes into account the future growth Broadcom could see as custom AI chip customers continue to increase.

We believe the prevailing narrative that Broadcom Inc. and Nvidia Corp. are locked in a zero-sum battle for artificial intelligence data center dominance is misleading. The reality is these companies are playing very different games.

Nvidia is set to be the principal beneficiary of more than $2 trillion in announced spending on AI infrastructure, according to Barclays.

Nvidia and OpenAI recently signed a letter of intent for 10-plus gigawatts of AI infrastructure, with Nvidia investing up to $100 billion in the AI pioneer. The partnership locks in OpenAI's training needs through 2028 while custom chips remain in development.

AI chipmaker Broadcom, which Oppenheimer analysts have called the "No. 2 AI franchise" after Nvidia, is set to report its fiscal third-quarter results after the bell on Thursday, and could face some similar challenges related to its large exposure to China—as well as benefit from AI tailwinds. 2 3

Nvidia Corp. shares fell on Friday, with the chipmaker at risk of losing its historic $4 trillion valuation for the first time in nearly two months.

There is also the UALink Consortium, which AMD helped found as an open standard alternative to Nvidia's NVLink. If adopted, this could break Nvidia's lock on multi-GPU systems and give customers more flexibility to mix and match vendors.

We recently published Top 10 Stocks to Watch After Federal Reserve’s Rate Cut. Broadcom Inc. (NASDAQ:AVGO) is one of the stocks analysts were recently talking about. Stacy Rasgon from Bernstein commented about Broadcom’s potential deal with OpenAI a few weeks back during a program on CNBC.

Artificial intelligence chip heavyweight Nvidia could have more competition to contend with after Broadcom's strong quarterly results, according to one Wall Street bull.

It's fair to ask the obvious question: Is Broadcom the next Nvidia (NASDAQ: NVDA)? Nvidia is the AI infrastructure leader, growing faster and generating far more profit. Is this Broadcom's future? Yes, Broadcom is benefiting from AI spending, but the two businesses are very different, and today's price already embeds a lot of optimism.

Chipmaker Nvidia will invest $100 billion in OpenAI as part of a partnership that will add at least 10 gigawatts of Nvidia AI data centers to ramp up the computing power for the owner of the artificia