Key Points
Nvidia, AMD, and Broadcom are leading players in the artificial intelligence chip market, with Nvidia holding over 90% of the discrete GPU market. Nvidia is the largest company by market cap, expecting to grow by 52% in fiscal 2027, while Broadcom anticipates the same growth rate with its custom AI accelerator chips. AMD, however, is projected to only achieve 32% revenue growth in 2026.
Nvidia trades at 24 times its expected earnings for fiscal 2027, making it the cheapest among the three despite perceptions of overvaluation. Broadcom’s ASICs are gaining traction, and its stock is slightly more expensive at 31 times forward earnings. Analysts suggest a coin flip between Broadcom and Nvidia for the best stock to own in the coming year.
