I Can't Stay Quiet on Broadcom (AVGO) vs Nvidia Stock (NVDA) Any Longer

About this video

• Video Title: I Can't Stay Quiet on Broadcom (AVGO) vs Nvidia Stock (NVDA) Any Longer
• Channel: Ticker Symbol: YOU
• Speakers: Alex
• Duration: 14:27

Overview

This video analyzes Broadcom (AVGO) and Nvidia (NVDA) as AI stocks. It discusses Broadcom's business model, its recent partnership with OpenAI, and how its custom chips and infrastructure software position it as a competitor to Nvidia. The video also examines Nvidia's dominance in AI, the growing AI market, and the speaker's investment perspective on both companies.

Key takeaways

• Broadcom's AI Play: Broadcom is making significant moves in the AI space, particularly through its partnership with OpenAI to design custom chips (Titan XPU) for inference workloads, aiming for better performance per dollar and per watt compared to GPUs.
• Nvidia's Dominance: Nvidia remains the "king of the AI revolution" due to its versatile GPUs, extensive CUDA platform, and software ecosystem, which are crucial for the complex and evolving demands of AI model training and inference.
• Market Growth: The AI market is projected to grow exponentially, expanding by nearly 20 times over the next nine years, indicating ample opportunity for both Broadcom and Nvidia to thrive.
• Broadcom's Diversification: Beyond AI chips, Broadcom has a strong infrastructure software business, largely due to its acquisition of VMware, and a dominant market share in data center Ethernet switching chips.
• Investment Outlook: While Nvidia is still considered the top AI stock, Broadcom's strategic positioning and growth in AI make it a strong contender, leading the speaker to move AVGO stock up on their investment list.