By Adam Clark

Nvidia is the leader when it comes to artificial-intelligence chips but rival Broadcom could be a better bet as an investment, according to analysts at Jefferies.

While both Nvidia and Broadcom are set to benefit from the continued wave of AI spending, it is the latter whose stock has more room to rise right now, according to analyst Blayne Curtis and his colleagues. Broadcom is their top pick in the semiconductor sector.

"For now, this is not a zero-sum game, rather a scramble for compute with upside across the entire AI universe. While Nvidia remains the leader and we still see upside there, Broadcom has a greater magnitude of estimate upside," wrote the analysts in a research note.

Analysts at Jefferies raised their price target on Broadcom to $480 from $415. Broadcom shares were down 1.8% at $355.64 in premarket trading, indicating a potential gain of around 35%.

By comparison, they have a price target of $240 on Nvidia stock suggesting a roughly 19% upside to the company's premarket price of $202.

While Nvidia chips will continue to be in demand, the Jefferies analysts expect Broadcom to benefit from custom chip projects at Google, Meta Platforms, and OpenAI.

Write to Adam Clark at adam.clark@barrons.com

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November 04, 2025 08:53 ET (13:53 GMT)

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