AVGO vs. NVDA: Which AI Chip Stock Holds Maximum Upside Potential as Semiconductor Battle Intensifies

The AI chip arms race just hit fever pitch—and two titans are duking it out for dominance.

NVIDIA's been the darling, no question. But Broadcom? They're playing chess while others play checkers.

Supply Chain Mastery

AVGO's vertical integration gives them brutal cost advantages. They control everything from design to delivery—cutting out middlemen and padding margins.

NVDA's Hardware Gambit

NVIDIA bets big on raw horsepower. Their chips push boundaries, but at premium prices that make enterprises sweat.

Market Positioning Wars

Broadcom dominates enterprise infrastructure. NVIDIA owns data centers and gaming. Different battlegrounds, same war for silicon supremacy.

Wall Street's already placing bets—because nothing gets analysts hotter than a good old-fashioned tech showdown. Just don't ask them to explain how either company actually works.

One thing's clear: this isn't just about chips. It's about controlling the computational bedrock of the next decade. Choose your fighter.

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Broadcom (NASDAQ:AVGO) Stock

Broadcom develops custom AI chips for Alphabet’s Google Cloud (GOOGL) and other cloud companies. It also offers networking parts and software needed to connect thousands of AI chips together. 

The company recently reported a 22% year-over-year growth in its Q3 FY25 revenue, driven by demand for its custom AI accelerators or application-specific integrated circuits (ASICs), networking parts, and VMware software. Notably, AVGO’s AI revenue surged 63% to $5.2 billion in Q3 FY25 and is expected to reach $6.2 billion in the fiscal fourth quarter.

Further, Broadcom’s commentary about securing $10 billion in orders for its custom AI chips (or XPUs) from a fourth customer further bolstered investors’ Optimism about the company’s growth prospects.

Is AVGO a Good Stock to Buy Now?

In reaction to the Q3 results, Piper Sandler analyst Harsh Kumar raised the price target for Broadcom stock to $375 from $315 and reiterated a Buy rating. Kumar was encouraged by AVGO’s Q3 print and stated that the good news continued through the earnings call as AI results and guidance reflected impressive year-over-year growth.

The 5-star analyst highlighted that Broadcom secured XPU orders from its fourth customer to the tune of roughly $10 billion, which is expected in the second half of Fiscal 2026. Kumar believes that within the AVGO hyperscaler customer base, XPUs now have a significant chance of becoming the dominant portion of the compute. He also noted that AVGO’s gross margins held up relatively well despite a notable XPU ramp.

With 24 Buys and two Holds, Wall Street has a Strong Buy consensus rating on Broadcom stock. The average AVGO stock price target of $375.30 indicates 11.5% upside potential from current levels. Broadcom stock has rallied more than 45% year-to-date.

Nvidia (NASDAQ:NVDA) Stock

Nvidia has seen a major jump in its business amid the AI boom, thanks to the massive demand for its advanced GPUs (graphics processing units). The company reported better-than-expected revenue and earnings for the second quarter of Fiscal 2026, but its data center business lagged expectations.

While many analysts acknowledge growing competition from Advanced Micro Devices (AMD) and Broadcom in the AI chips space, they remain bullish on Nvidia stock due to its dominant position in the GPU market, solid execution, and continued innovation. In fact, on Tuesday, Nvidia unveiled Rubin CPX, a new class of GPU, which the company said is “purpose-built for massive-context processing.”

Is NVDA Stock a Buy, Hold, or Sell?

On Monday, Citi analyst Atif Malik lowered his price target for Nvidia stock from $210 to $200, but maintained a Buy rating. The 5-star analyst contended that while GPUs will continue to dominate the AI compute market with an 85% sales share, he expects the XPU market to accelerate year-over-year into 2026.

Malik expects the XPU segment to grow by 53% in 2026, outpacing the 34% growth expected for AI GPUs, driven largely by ramp-ups at Alphabet’s Google (GOOGL), Meta Platforms (META), and Amazon (AMZN). Malik expects about $12 billion less in GPU sales in 2026 than what he previously forecasted, reflecting the impact of growing demand for XPUs on Nvidia’s business.

However, KeyBanc analyst John Vinh does not think Nvidia’s moat is at risk, as he believes that the company’s CUDA software stack presents a major barrier to entry, given that developers are familiar with it and may be reluctant to MOVE to other hardware. Vinh has a Buy rating on NVDA stock with a price target of $230.

Overall, Wall Street has a Strong Buy consensus rating on Nvidia stock based on 35 Buys, three Holds, and one Sell recommendation. The average NVDA stock price target of $210.08 indicates 23% upside potential from current levels. Despite the recent pullback, NVDA stock has risen over 26% year-to-date.

Conclusion

While the growing competition in the AI chip space can’t be denied, analysts currently see higher upside potential in Nvidia stock than in Broadcom. Nvidia leads the AI GPU market and is well-positioned to capture further demand through continued innovation. That said, Wall Street is bullish on both stocks due to the robust demand for the chips offered by these two companies to support massive AI workloads.