Samuel O'Brient
4 min read
In This Article:
Broadcom could blow past Nvidia, expert predicts originally appeared on TheStreet.
One of the tech sector’s most dominant players just reported strong earnings for Q2 2025, beating Wall Street estimates.
Broadcom (AVGO) has performed well since the start of the year, recovering from some April volatility and demonstrating strong resilience. Now the multi-faceted tech company, known for producing custom silicon chips and infrastructure software products, looks well-positioned to continue rising.
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Despite all its success since the start of the artificial intelligence (AI) boom, Broadcom remains consistently overshadowed by Nvidia (NVDA) , the chipmaking industry’s undisputed leader. But as the company prepares to enter a new quarter, multiple investing experts have flagged it as a likely winner in the coming year.
For months, AI investors have wondered when and if Broadcom can step out of its rival’s shadow and establish itself as a market leader. Now, two financial experts believe that day may be approaching.
Earlier this week, TheStreet’s Charley Blaine predicted that Broadcom’s earnings could produce shock and awe, urging investors not to dismiss the stock’s year-to-date (YTD) performance. Now the company has posted them, coming in above Wall Street estimates on earnings-per-share (EPS) and issuing strong revenue guidance.
Related: Heavily shorted AI stock is rapidly climbing the Fortune 500
This shows progress from the chipmaker as it maneuvers to stay ahead in a highly volatile market and compete with other semiconductor producers. Many companies have found it difficult to hold their own against Nvidia, primarily due to the company’s popularity among hyperscalers, firms that provide cloud services or large-scale data centers.
Freedom Capital Markets Chief Global Strategist Jay Woods recently addressed Broadcom’s prospects, though, noting that Nvidia hasn’t been able to lead the industry in the way that investors need. As he sees it, this may create a key opportunity for Broadcom.
“The semiconductor company has grown mightily in Nvidia’s shadows for years now,” he states. “Shares have rallied just over 500% from its 2022 lows, which pales [in comparison] to the 1250+% rally in Nvidia. However, over the past 52 weeks, AVGO shares are leading up 84% compared to Nvidia’s 15% gain.”
Woods adds that Broadcom is “basically Nvidia’s baby brother,” with a slightly lower trillion-dollar market cap and a place in exchange-traded funds (ETFs) such as the VanEck Semiconductor ETF SMH and the Technology Sector ETF XLK, as well as the Nasdaq 100 index.
