Nvidia vs Broadcom: Which Will Capture More of the AI Infrastructure Boom?

NVIDIA (NASDAQ:NVDA) and Broadcom (NASDAQ:AVGO) are both benefiting from the growing demand for artificial intelligence infrastructure, but they're taking different approaches to capitalize on this trend.

NVIDIA's Q1 FY2027 revenue reached $81.6 billion, up 85.23% year-over-year, while Broadcom's Q2 FY2026 revenue came in at $22.19 billion, up 47.9%. Broadcom guided its AI revenue for the third quarter to $16 billion, implying growth of over 200%.

NVIDIA's strength lies in its merchant GPU platform, which is the default choice for hyperscalers, while Broadcom sells custom silicon to these same hyperscalers when they want to design around NVIDIA. The two companies have different business models, with NVIDIA focusing on a broader range of applications and Broadcom concentrating on a few key hyperscalers.

The question facing investors now is which model will capture more of the infrastructure buildout. Growth investors may lean towards NVIDIA's 75% gross margin and $80 billion buyback authorization, while income investors may prefer Broadcom's software cushion and quarterly dividend of $0.65.