This Tech Sector Stock Is Way Cheaper Than Broadcom

Group 1 - Broadcom's shares have increased over 132% in the past year due to high demand for AI-powered networking solutions and custom AI chips, with the VMware acquisition aiding in the transition to a higher-margin software business [1] - Despite strong business momentum, Broadcom's stock is considered expensive, trading at approximately 41 times forward earnings, indicating limited room for error [1] Group 2 - Nvidia's shares are trading at a lower forward earnings ratio of 24.3 times, making it a potentially better investment choice [2] - In the third quarter of fiscal 2026, Nvidia reported a 62% year-over-year revenue increase to $57 billion, with data center revenue rising 66% to $51.2 billion [3] - Nvidia has provided strong guidance for the fourth quarter, expecting nearly 14% revenue growth sequentially, with gross margins in the mid-70s [3] Group 3 - Nvidia has cumulative revenue visibility of nearly $500 billion from its Blackwell and Rubin systems through 2025 and 2026, with $150 billion in orders already shipped by the end of the third quarter [4] - The company is benefiting from the demand from hyperscalers scaling GPU deployments for AI training and inference workloads [4] Group 4 - Nvidia is committed to an annual product release cycle and has established a leading AI technology stack, planning to deploy 5 million GPUs in AI factories and various infrastructure projects [5] - The company is well-positioned to capture a significant share of the $3 trillion to $4 trillion AI infrastructure buildout opportunity by 2030 [6] Group 5 - Nvidia's forward earnings level is significantly cheaper compared to Broadcom, with visibility into $500 billion worth of orders through 2026 [7] - Nvidia is positioned as a key beneficiary of the multitrillion-dollar AI infrastructure buildout [7]