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NVIDIA leads the AI hardware market with strong revenue growth and dominant GPU technology.
Broadcom offers stable returns through custom AI chips and a diversified business model.
Both companies remain central to the AI boom, each with distinct strengths and investor appeal.
One year after their highly publicized stock splits in 2024, both NVIDIA and Broadcom continue to dominate headlines in the artificial intelligence (AI) sector. These two tech giants have played critical roles in powering the AI revolution, but their paths and performance since the splits have varied.
NVIDIA, the undisputed leader in AI chips, has delivered explosive gains despite some market volatility. Broadcom AI, while more diversified, has also enjoyed solid returns, backed by its focus on custom AI chips and strong software business. This article explores how these companies have performed over the past year and what their future may hold.
NVIDIA stock executed its 10-for-1 split on June 7, 2024. The move was aimed at making shares more affordable to retail investors and increasing overall trading activity. Since the split, NVIDIA’s share price has climbed nearly 40% over the past year. However, the ride has not been without bumps. A notable drop of about 22% in April 2025 briefly shook investor confidence, but the stock rebounded as demand for AI hardware remained strong.
As of July 2025, NVIDIA is trading around $167 per share. Though it has shown some price swings, the overall momentum remains positive due to continued growth in the AI sector.
NVIDIA remains the dominant player in the market for AI graphics processing units (GPUs). It controls over 80% of the market share in this area, making its hardware the go-to choice for training and running large AI models. In 2025, the company also reached a major milestone by becoming the world’s most valuable publicly traded company with a $4 trillion market cap.
The success is driven by the launch of its Blackwell chips, which are specially designed for advanced AI tasks. These chips brought in over $11 billion in revenue during the first quarter of the fiscal year.
For the full fiscal year 2025, NVIDIA’s revenue rose dramatically to $130.5 billion, more than double the $60.9 billion it earned the year before. Net income also surged, reaching $72.9 billion. These figures highlight the company’s ability to grow rapidly in the high-demand AI space.
However, NVIDIA’s price-to-earnings (P/E) ratio remains relatively high at around 40. This means the stock is considered expensive compared to earnings, but many analysts believe the premium is justified given the company’s leading role in AI.
Also Read: Best Free AI Courses from NVIDIA to Enroll in 2025
Despite its impressive performance, NVIDIA faces many obstacles. These include strict export controls that limit sales to certain countries like China and increasing competition from rivals like AMD. The company’s future success depends heavily on continued global spending on AI and data center expansion.
Broadcom AI followed NVIDIA stock with its own 10-for-1 split on July 12, 2024. Unlike NVIDIA, Broadcom’s growth has been more stable and measured. Since the split, the company’s share price has increased by roughly 15% to 20%. In some periods, it even delivered returns close to 80%, depending on the broader tech market and earnings reports.
Currently, Broadcom shares trade around $278 after adjusting for the split. While not as flashy as NVIDIA, the company has steadily built value for shareholders.
Broadcom AI takes a different approach. Instead of making general-purpose GPUs, it specializes in creating custom-designed chips known as ASICs (Application-Specific Integrated Circuits). These chips are used by major tech firms like Google, Meta, and ByteDance to power their AI models.
Google, for instance, uses Broadcom’s technology to build its Tensor Processing Units (TPUs), which run AI models like Gemini. These chips are tailored for specific tasks and can be more energy-efficient than GPUs.
Broadcom’s business is well-diversified. While its AI chip segment is growing fast. It brought in $4.4 billion in Q2 of fiscal year 2025. The tech giant’s software business also contributes significantly to total revenue. In the same quarter, Broadcom posted $15 billion in total revenue, a 20% year-over-year increase.
The company expects AI chip sales to reach $5.1 billion in the next quarter, which would make up about one-third of its total revenue. It also owns VMware, a cloud software firm, which adds stability and cash flow to its overall operations.
Broadcom AI stock enjoys strong backing from institutional investors. Over the past year, large mutual funds have invested over $24 billion in the stock, reflecting growing confidence in its long-term prospects. Its valuation, while high at around 32 times estimated free cash flow, is considered reasonable given its diversified business and growth potential.
Despite its success, Broadcom AI faces limitations. Custom chips are less flexible than general-purpose GPUs and are mainly used for specific AI applications. This can limit the number of customers or use cases. Additionally, there is increasing competition from other custom chip makers and rising development costs.
Broadcom also has to regulate exports and maintain long-term deals with major clients like Google. Any disruption in these relationships could impact revenue.
The global AI market continues to expand rapidly. Analysts expect the AI chip industry to grow to $500 billion by 2030. Both training and inference workloads are becoming more complex, requiring powerful and efficient chips.
Cloud service providers like Amazon, Microsoft, and Google are investing heavily in building large-scale data centers, further increasing demand for both general-purpose GPUs and custom-designed ASICs.
Other chipmakers like AMD, Marvell, and MediaTek are also trying to carve out their share of the market, adding competition but also validating the long-term importance of the sector.
Also Read: Should You Buy Broadcom Stock Now?
One year after their splits, NVIDIA stock and Broadcom AI stock have both capitalized on the AI boom but in distinct ways. NVIDIA continues to shine with its advanced GPUs and rapid revenue growth, while Broadcom maintains a strong, steady climb with its focus on custom chips and diversified business.
As AI becomes more deeply embedded in industries around the world, both companies are well-positioned to shape the future of technology.
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