The Zacks Analyst Blog Highlights NVIDIA, Broadcom and Alphabet

For Immediate ReleaseChicago, IL – March 11, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NVIDIA Corp. NVDA, Broadcom Inc.'s AVGO and Alphabet Inc. GOOGL.Here are highlights from Monday’s Analyst Blog:Which AI Stock Is a Better Buy Now: NVDA or AVGO?With the arrival of artificial intelligence (AI), both NVIDIA Corp. and Broadcom Inc.'s shares have scaled upward. However, to manage AI workloads, Broadcom's custom AI accelerators, designed in collaboration with Alphabet Inc., compete directly with NVIDIA's graphic processing units (GPUs). In this context, let's explore which one of them has the upper hand and is a better buy.Reasons to Be Bullish on NVIDIA StockThe threat from DeepSeek's cost-efficient large language model has been blown out of proportion, and it shouldn't have a long-term impact on NVIDIA. This is because low-cost models will, in due course, drive more use of computing power and assist NVIDIA. The semiconductor giant, nevertheless, has the necessary resources to create affordable products and enhance the AI ecosystem.Developers at the moment prefer NVIDIA's CUDA software platform more than Advanced Micro Devices, Inc.'s (AMD) ROCm software platform. Moreover, any change from CUDA to ROCm is unlikely due to the unmanageable infrastructure transitions.NVIDIA's market leadership in the GPU market has already given the company a competitive edge and will drive future growth. Additionally, NVIDIA's latest quarterly sales for the Blackwell AI processor exceeded Wall Street expectations due to its insane demand. This demand is likely to persist thanks to Blackwell's faster AI interface and enhanced efficiency.Reasons to Be Bullish on Broadcom StockStrong demand for Broadcom's custom AI accelerators and application-specific integrated chips is set to drive revenue growth. Broadcom expects to tap into the demand for custom AI accelerators, projecting a market size of $60 billion to $90 billion by 2027.Broadcom's revenues from custom AI accelerators and connectivity switches were $12.2 billion in fiscal 2024, up 220% from fiscal 2023. Broadcom expects AI revenues to grow for the first quarter of the fiscal year 2025.Acquiring VMware has benefited Broadcom's infrastructure software solutions. The company has added more than 4500 of its top customers to VMware Cloud Foundation for deploying private cloud environments on-premises.Moreover, Broadcom has generated substantial cash flows in fiscal 2024, which enabled it to pay out dividends. The company also spent on share repurchases as management remained confident about future earnings.Is NVDA Stock a Better Buy Than AVGO Stock?Ebbing DeepSeek concerns, GPU dominance, and high demand for Blackwell chips will continue to boost NVIDIA. On the other hand, strong demand for custom AI accelerators will benefit Broadcom.However, Broadcom's custom AI accelerators can't outperform NVIDIA's GPUs because they work best when a workload is primarily assigned to run through a Broadcom-designed accelerator.Unlike NVIDIA, Broadcom has a much broader business. But it's the AI hardware segment that drove sales growth in the fiscal year 2024, while its other segments struggled. Moreover, its revenue growth in the fiscal year 2024 is nothing compared to NVIDIA's revenue growth of $130.5 billion in fiscal 2025, up 114% year over year.NVIDIA's higher revenue growth makes it a better buy than Broadcom currently. To top it off, buying NVIDIA stock is a more cost-effective option compared to Broadcom. After all, per the price/earnings ratio, NVDA trades at 25.6X forward earnings. In comparison, AVGO's forward earnings multiple is 30.83.NVIDIA stock, rightfully, has a Zacks Rank #2 (Buy). Broadcom stock has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here.Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.com                                      https://www.zacks.com                                                   Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA): Free Stock Analysis Report Broadcom Inc. (AVGO): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks