저자: ParkevTatevosian,CFA · 외국인
요약 보기
엔비디아와 브로드컴을 매출·영업이익률·밸류에이션으로 비교. 엔비디아 매출 2,160억달러(브로드컴 640억달러), 영업이익률 62.4% vs 39.9%. 선행 PER은 엔비디아 21배, 브로드컴 31배로 엔비디아가 저평가. 자체 DCF로 엔비디아 적정가 308달러(현재 219달러), 브로드컴 498달러(현재 419달러) 제시. 두 종목 모두 매수 의견이며 본인은 엔비디아 보유.
다듬은 글
Nvidia and Broadcom are designing the large majority of the accelerated computing chips and networking equipment that's going inside these data centers that are being built at trillions and trillions of dollars in total. But which one of these two investments is the better stock to buy at current market prices?
That's the question I'm going to focus on in this video by comparing the two head-to-head across critically important financial metrics and valuation to come up with a conclusion. &, the first metric I wanted to compare these two on is total revenue. And what you see in the orange there is Nvidia and in the blue you have Broadcom.
And you can see phenomenal growth in the recent years for both Broadcom and Nvidia. But Nvidia is significantly surpassing Broadcom, which had the advantage for the better part of the previous decade, right? From 2016 to 2023, Broadcom had been generating more annual revenue than Nvidia, even though Broadcom had been making several acquisitions.
And since 2023, Nvidia has really exploded to the upside, even though Broadcom made another big acquisition with VMware. Even after including all of that revenue from VMware, Nvidia still generates more revenue and generates more revenue growth. In the most recently completed period, Nvidia generated $216 billion in revenue, whereas Broadcom reported $64 billion in annual revenue.
Now, there's a slight difference here between the two because they have different fiscal years. And so, it's a little bit not an apples-to-apples comparison, but for the most part, you get the idea. Nvidia generates significantly more revenue than Broadcom. And in the hashtag in the dotted line in the dashed line, you see that's the forecast for how much revenue growth these companies are expected to generate.
Broadcom is expected to generate significant growth from $64 billion in the most recently reported period all the way up to $218 billion in its fiscal year 2028. Meanwhile, Nvidia's revenue is also projected to explode from $216 billion in its most recently completed fiscal year all the way up to $548 billion for its fiscal year 2028.
So, they're both expected to deliver explosive revenue, but Nvidia is forecasted to capture a lot more. The next metric I wanted to compare these two on is measures how much profit the company has left over. If you take revenue and you subtract the cost of goods sold and you subtract all of the other operating costs.
The only things that are not included in operating expenses are things like interest expenses and taxes. Those are the two biggest items that are not included in operating income. What's also not included, and this is becoming increasingly important, is gains from equity investments. So, Nvidia has made investments into companies like OpenAI and others, and those investments have gained in value dramatically.
Nvidia reported a $16 billion profit in its most recently completed quarter on those equity gains, but that's not included in operating income. That comes below because that's not a part of Nvidia's operations, correct? Those are parts of another company's operations that Nvidia owns and has an equity stake in those operations.
So, when the value of those businesses increase, Nvidia has to report those, but it comes below the operating income figure. So, these comparisons here between Nvidia and Broadcom are only between their operations revenue minus all of the cost and what's the profit in that term. And in those regards, Nvidia outperforming Broadcom again.
On top of the outperformance on revenue, they're also outperforming on operating profit margin at 62.4% in the most recently completed period compared to 39.9% for Broadcom. Now, let me be clear. An operating profit margin of 39.9% is remarkable. Many of you that are watching this video, you might have businesses of your own, and I think we would all agree that if we can have a business that generates an operating profit margin of 40%, we would be ecstatic.
If I'm wrong, let me know in the comment section. Uh I'm envious if you have a business that generates an operating profit margin above 40%. Kudos to you. You're doing something right, incredibly right, because there are relatively few businesses in the world that can generate operating profit margins at 40% or above.
Broadcom is one of those, but Nvidia makes Broadcom look like a junior partner with its operating profit margin of 62.4%. In fact, Nvidia makes most businesses look like junior partners because of how incredible nearly all of their metrics are. Whether you're looking at revenue, whether you're looking at operating margin, cash flow, return on invested capital, return on assets.
I could go on and on regardless of the metric I can bring up and share with you. It looks incredible across the board for Nvidia. Broadcom looks really strong as well. It's just not as strong as Nvidia. All right, so now that we looked at some performance metrics and forecasts, let's look at valuation.
And you might find this to be surprising. I know I certainly do. Nvidia stock is trading at roughly 2/3 the valuation of Broadcom stock when measuring on a forward price-to-earnings basis. So, Broadcom is trading at a forward PE of 31. Nvidia is trading at a forward PE of 21. And in fact, Nvidia's valuation is one that I've been highlighting as being significantly undervalued because it has such excellent prospects, it delivers such fantastic results, and yet the stock price trades at a relatively cheap valuation.
And that surprises me. Even though Nvidia's stock has been rising year-to-date in 2026, it hasn't increased as much as some of these other smaller cap not small cap, but just smaller than Nvidia have been increasing. Companies like Micron, even Broadcom, Intel, AMD, SanDisk, Western Digital. And I could go on and on of stocks in the AI ecosystem that have absolutely soared, whereas Nvidia is delivering good returns, but these are not fantastic returns compared to what some other companies.
And so, I think that's underperformance for Nvidia that I think we'll recover. I think that Nvidia share price will close the gap between itself and some of these other AI stocks that have been booming of late. Certainly surprised to see Nvidia trading at a cheaper valuation than Broadcom because Nvidia is delivering better revenue growth, better profitability, with better forecasts for the foreseeable future in terms of revenue growth, and yet it trades at a discount to Broadcom.
It trades at a discount to a lot of companies that I'm surprised that it does. If you want to see an interesting comparison, compare Nvidia to Tesla. Nvidia stock is trading at roughly 1/10 the valuation of Tesla stock. It's remarkable to me that sometimes the market can present you with those kinds of situations, and the market is what the market is.
It's not always rational, or it's not always what you or I think is rational, but the market sometimes has a mind of its own. So, I also wanted to compare valuation using my customized discounted cash flow model. I calculated a fair value for Broadcom at $498 per share. This is after I updated the cash flow expectation following Broadcom's latest earnings results, which were a couple of days ago.
And the current market price is $419 after Broadcom stock price fell by over 12% following those quarterly earnings results, which if you didn't watch that video, my overall my summarized conclusion in that video was that Broadcom delivered fantastic results, but the stock price had increased by so much going into those results that it pulled back following what, in my opinion, was a great quarter with great expectations for the upcoming quarter, but still the stock price fell because the market was expecting something even more fantastic, and Broadcom has been one of those stocks that's absolutely surged, and I'm happy about that because, you know, earlier this year for most of this year I have had Broadcom stock ranked as one of the best 10 or 15 stocks you can buy.
I only recently took it off my list shortly before the company reported these quarterly results on I believe it was like May 15th when I removed Broadcom off my ranking of top stocks to buy and the reasoning I provided was even though it's an excellent company with great prospects the market price had increased a little bit too much ahead of those prospects and so I didn't think it was a great opportunity any longer once the price had increased by so much and now it's down and under 12 and a half percent and you can see compared to the fair value I calculated at $498 at the market price of 419 Broadcom stock looks undervalued to be sure.
Similarly, I calculated a fair value for Nvidia stock and my conclusion is that Nvidia is worth about $308 per share compared to the current market price of $219 per share. So like Broadcom Nvidia stock also looks undervalued and by a meaningful sum to my surprise. Now for transparency sake I will share that I own Nvidia stock.
I've owned Nvidia stock since it was around $90 per share. I do not own Broadcom stock even though I've been interested in buying Broadcom stock. I haven't actually bought Broadcom stock at any point but it's still near the top of my list of stocks that I want to buy. I just haven't bought it just yet but Nvidia is one that I did buy.
I want to say maybe the first time I bought it was after the liberation day tariffs were announced in April of 2025. I believe that's when I first bought Nvidia stock. I may have added to that position afterwards, but that was my first purchase of Nvidia stock after the price crashed following the announcement of tariffs.
So, all that being said, which one of these two companies would I rather buy at current market prices? I would rather buy Nvidia stock at these prices. I think Nvidia is the better company compared to Broadcom, and at the same time Nvidia is selling at a lower price. So, I'm happy to be able to purchase Nvidia stock at a lower price compared to Broadcom, even though I think Nvidia is the better business.
So, if I had to make a choice today, I would pick Nvidia. But, you know what? Nobody forces you to make a choice, and you don't have to choose between these two. You can own each of them, and I have each of them rated as a buy. I think they're both excellent stocks and excellent values right now. I like Nvidia more than Broadcom.
I have Nvidia ranked in my list of top 12 stocks to buy. Broadcom is no longer on that list, but Broadcom is still ranked as a buy in my list, and I keep track of those all the time. So, right now Broadcom is ranked as a buy here, and Nvidia is ranked as one of the best stocks you can buy. But, let me know what you think.
Let me know which one you would rather buy right now at these market prices. And then, I'm also interested in hearing why. You know, that's most interesting to me. Uh yes, I want to know which one you'd rather own, but what makes me most curious is your thoughts and opinions on why you think Broadcom is better, or why you think Nvidia is better.
That's what I find most interesting when I'm reading my comments is your reasoning, your thoughts. I know my viewers are some of the smartest people on YouTube, right? You have to be if you're watching videos about single stocks and comparing stocks to buy, you're likely achieving a lot of success in your life to have the leftover money to make these purchases of investments.
And so, I know that and from the comments I'm reading, I know that I have some of the smartest viewers on YouTube. So, I'm really curious in hearing your thoughts. Share them with me in the comment section below.
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