A Motley Fool analysis built on Nvidia's and Broadcom's own guidance estimates a $10,000 investment split between the two stocks could grow to $30,000-$40,000 by 2030. The case rests on data-center spending that both companies expect to keep climbing through the decade.
Nvidia and Broadcom supply different pieces of the hardware stack that powers AI data centers, and analyst Keithen Drury argues neither stock's valuation reflects the growth embedded in management's own targets.
Nvidia and Broadcom fill different niches in AI computing
Nvidia built its lead with general-purpose computing products, but its graphics processing units aren't always the best tool for the job, according to the analysis. Broadcom's custom AI chips compete where a workload doesn't need a GPU's flexibility. The two are described as complements rather than rivals, with many AI hyperscalers already deploying both.
Broadcom trades at $355.14, up 3.35%, or $11.50, with a market cap of $1.7 trillion. Nvidia trades at $233.95, up 1.34%, or $3.09, with a market cap of $5.6 trillion.
Guidance points toward tripling revenue by 2030
Broadcom expects about $115 billion in AI semiconductor revenue in 2027, doubling to $230 billion in 2028. Nvidia told investors during its most recent earnings call that it expects 70% revenue growth during 2027. Neither figure reaches out to 2030, so the analysis leans on Nvidia's longer-term outlook instead.
Nvidia management forecasts data center capital expenditures reaching $3 trillion to $4 trillion by 2030. The five largest AI hyperscalers are expected to spend about $800 billion on capital expenditures this year alone. Once other players are included, that figure could reach around $1 trillion, and the analysis expects the addressable market to triple or quadruple by 2030.
Spending should also shift toward computing hardware as hyperscalers finish acquiring land and building facilities. Once those sites are operational, the analysis argues, the cost burden moves toward the computing side, giving companies like Nvidia and Broadcom an even greater share of revenue.
If Nvidia's projections hold, Drury concludes neither stock has priced in that growth. A $10,000 investment split between the two, he writes, could be worth $30,000 to $40,000 by the end of 2030.
Source: The Motley Fool
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