Nvidia and Broadcom may be fellow passengers on the AI hype train, but they occupy different carriages. Nvidia’s off-the-shelf chips, known as graphics processing units, are the state of the art. But Broadcom helps so-called hyperscalers build silicon for more narrow tasks,

Broadcom's custom AI chips appeal to cloud companies as a cheaper option for high-volume AI work.

Nvidia posts stellar earnings with $39B revenue and $43B forecast, fueled by AI demand. Click here to read more about NVDA stock and why it is a Buy.

Shares of semiconductor firm Broadcom (AVGO) kept surging today after a leading U.K. analyst said it was starting to emerge from the shadow of

Chip designers Nvidia and Broadcom are running manufacturing tests with Intel , two sources familiar with the matter told Reuters, demonstrating early confidence in the struggling company's advanced production techniques.

Broadcom's shares soared 12% in premarket trading on Friday as the chipmaker's strong revenue forecast helped restore some confidence in AI chip demand after a bruising sector-wide selloff following rival Marvell Technology's bleak outlook.

Chipsets known as graphics processing units (GPUs) are perhaps the most important hardware in generative AI development right now. For the last couple of years, investing in semiconductor stocks has generally been a great idea -- as you're nearly guaranteed some form of exposure to GPUs or data centers.

While Broadcom may be a darling in the market's eyes, it's clear that Nvidia is still the better stock to buy right now. With Nvidia's stock a bit weak following earnings, investors should use this opportunity to scoop up shares of this dominant AI player.

Nvidia sells the lion’s share of the parallel compute underpinning AI training, and it has a very large – and probably dominant – share of AI inference.