Broadcom experienced a decline of -17% over the past month. You might feel inclined to purchase more shares or perhaps consider decreasing your investment. However, there is an entirely different viewpoint you could be overlooking. Is there a preferable option? It appears that its competitor NVIDIA provides you with greater advantages. Separately, see: Is Intel Stock Overvalued?
NVIDIA (NVDA) stock displays significantly better revenue growth during crucial timeframes, enhanced profitability, and a comparatively lower valuation compared to Broadcom (AVGO) stock, implying that investing in NVDA may be a wiser choice.
POLAND – 2024/04/04: In this photo illustration, a NVidia logo is seen on a smartphone with stock market percentages on the background. (Photo Illustration by Dominika Zarzycka/SOPA Images/LightRocket via Getty Images)
SOPA Images/LightRocket via Getty Images
- The quarterly revenue growth for NVDA stood at 62.5%, in contrast to AVGO’s 28.2%.
- Moreover, its revenue growth over the last 12 months reached 65.2%, surpassing AVGO’s 23.9%.
- NVDA outperforms in terms of profitability during both periods, boasting a last twelve months (LTM) margin of 58.8% and a 3-year average margin of 55.8%.
These distinctions become even more apparent when you examine the financial results side by side. The table below illustrates how AVGO’s fundamentals compare to those of NVDA concerning growth, margins, momentum, and valuation multiples.
Overview of Valuation & Performance
AVGO
Trefis
Note: For “Last 3 Year Return” metric, the preferred stock is one with higher returns unless the returns are too high (>300%) which creates a risk of sell-off.
See additional revenue details: AVGO Revenue Comparison | NVDA Revenue Comparison
See further margin details: AVGO Operating Income Comparison | NVDA Operating Income Comparison
MORE FOR YOU
Explore detailed fundamentals on Buy or Sell NVDA Stock and Buy or Sell AVGO Stock. Below, we compare market return and related metrics across several years.
Market Performance History
AVGO
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No matter how impressive the figures may be, investing in stocks is never a linear process. There is always risk that needs to be considered. Read NVDA Dip Buyer Analyses and AVGO Dip Buyer Analyses to observe how these stocks have dropped and subsequently recovered in the past.
If you are still uncertain about AVGO or NVDA, consider a portfolio approach.
When Stock Selections Fall Short, Portfolios Prevail
Stock values can surge or plummet, but sustained success stems from maintaining a long-term investment. An appropriate portfolio aids you in capitalizing on gains while softening the impact of individual stock declines.
The Trefis High Quality (HQ) Portfolio, comprising 30 stocks, has a proven history of easily outperforming its comparables, including all three – the S&P 500, S&P mid-cap, and Russell 2000 indices. What accounts for this advantage? Collectively, HQ Portfolio stocks have yielded better returns with lower risk relative to the benchmark index; a less turbulent journey, as demonstrated by HQ Portfolio performance metrics.