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Broadcom (NASDAQ: AVGO) has seen its shares increase by over 530% in the past five years. In Q2 2023, the company reported a revenue jump of 43% year over year, reaching $12.5 billion, boosted by the acquisition of VMware for $69 billion. However, excluding VMware, Broadcom’s growth rate is only 12%, contrasting sharply with Nvidia’s Q2 sales increase of 122% to $30 billion.
Compared to Nvidia, which focuses on general-purpose AI chips, Broadcom specializes in application-specific integrated circuits (ASICs) for clients like Alphabet and Meta Platforms. Nvidia, however, is planning to enter Broadcom’s ASIC market, heightening competition.
Despite Broadcom’s solid performance, analysts suggest that Nvidia’s market position and growth potential make it a more attractive investment. Broadcom’s future may still hold promise for diversification amid concerns that generative AI technology may not meet expectations.
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