Core Viewpoint - Nvidia is viewed as a significantly better investment compared to Broadcom, despite both companies benefiting from the AI boom [1] Nvidia - Nvidia holds over 90% market share in data center GPUs and is a leading supplier of generative AI networking equipment [4] - The company has competitive advantages including rack-scale systems that integrate GPUs, CPUs, and networking for data center infrastructure [5] - Nvidia's software ecosystem, CUDA, supports its GPUs and is essential for developers across various applications [6] - Recent policy changes allow Nvidia to sell its H200 GPUs in China, potentially reclaiming its market share [7] - Wall Street expects Nvidia's earnings to grow at 37% annually over the next three years, with a median target price of $250 per share, implying a 43% upside from the current price of $175 [8][9] Broadcom - Broadcom has a strong market presence in Ethernet networking chips and ASICs, holding over 80% market share in Ethernet switching and routing chips [10] - The company is a leading supplier of custom AI accelerators, developing silicon for major clients like Google and Meta [11] - While ASICs are cheaper than Nvidia GPUs, the total cost of ownership is higher due to the lack of prebuilt software tools [12] - Wall Street anticipates Broadcom's earnings to grow at 30% annually over the next three years, with a median target price of $450 per share, implying a 25% upside from the current price of $360 [14]