Better Buy: Broadcom vs. NVIDIA Corp.

Broadcom and NVIDIA are two prominent players in the semiconductor industry. AVGO designs, develops, and supplies a range of analog and digital semiconductor connectivity solutions and infrastructure software solutions.

NVDA designs and manufactures computer graphics processors, chipsets, and related multimedia software in gaming, professional visualization, data center, and automotive markets. Its products are sold to OEMs, ODMs, system builders, add-in board manufacturers, retailers/distributors, Internet and cloud service providers, mapping companies, and other ecosystem participants.

The ongoing war between Russia and Ukraine and growing tensions related to Taiwan between China and the United States have been worsening the global chip shortage lately. However, substantial policy support and corporate investments are expected to boost domestic chip production. Therefore, the industry is expected to benefit from the surging demand for chips in the long run.

Moreover, chipmakers are developing advanced chips with lower latency and power consumption to drive device efficiency. The global semiconductor market is expected to grow at a 9.2% CAGR to $893.10 billion by 2029. Therefore, both AVGO and NVDA should benefit.