The article sees NVIDIA's CUDA ecosystem as the stronger source of customer lock-in, while Broadcom could gain from custom AI chips and networking. Broadcom's AI semiconductor revenue reached $10.8 billion in its second quarter, up 143% year over year.
The article cites consensus earnings-per-share forecasts of $9.27 for NVIDIA and $11.67 for Broadcom this year, rising to $15.74 and $19.25 next year. Their forward price-to-earnings multiples are about 24.9 and 19.4, respectively.
NVIDIA could lose some workloads if cloud providers build capable chips for their own needs, the article says. Broadcom's custom-chip business, in turn, depends on a small number of very large customers, leaving it exposed if one changes its AI strategy.
