If you asked me at the beginning of the year how I would do Advanced micro devices (NASDAQ:AMD), Broadcom (NASDAQ: AVGO) and Nvidia (NASDAQ: NVDA) In terms of potential stock performance, I would have put Nvidia at the top, Broadcom in the middle, and AMD at the bottom. So far my prediction that Broadcom would be in the middle of the pack has been confirmed in 2026, but AMD has been a big winner while Nvidia has been a loser.
There’s still plenty of time left in 2026, but which of these three artificial intelligence (AI)-related stocks is the best buy now?
Did you miss Nvidia 2009? This rare signal flashes again. In 2009, a “double down” signal flashed for a little-known chip maker called Nvidia. For the first time in years, the same “Total Conviction” signal is flashing for a company one hundredth the size of Nvidia. Carry on”
Let’s take a look at this trio and reclassify them for the rest of 2026 and into 2027.
Image source: Getty Images.
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AMD and Nvidia compete in the same field
All three of these stocks are being boosted greatly by massive AI spending. AMD and Nvidia approach this problem from the same perspective, as both offer graphics processing units (GPUs) that excel in computing scenarios with variable, complex workloads. However, Nvidia’s products have really dominated the field so far and Nvidia has a commanding lead in the data center sector.
Broadcom is taking a completely different approach. Instead of a general-purpose computing unit like a GPU, the company worked directly with a handful of AI hyperscalers to develop a bespoke AI chip tailored to each company’s workloads. This creates a chip that often offers better value for money than GPU-based computing, leading to its increasing popularity.
Broadcom expects big growth next year as new customers bring their custom AI chips to market. Currently Broadcom’s main customer alphabetwith its Tensor Processing Units (TPUs). However, Broadcom also makes customized AI chips MetaplatformsAnthropic and OpenAI, and production of these chips is scheduled to ramp up late this year and next.
So which of these is the best horse to bet on in a business approach? I’m still skeptical of AMD because the company has an uphill battle for data center space despite so many ecosystems already built around Nvidia’s. It’s a tricky one between Nvidia and Broadcom, as many companies stick with GPU-based training because of the flexibility. Still, custom AI chips are likely to become very popular in the next few years as AI hyperscalers look to optimize their spending. For this reason, I give this game a tie to Nvidia and Broadcom.
The story continues
Winners: Nvidia and Broadcom
Nvidia still dominates the growth game
In terms of growth, Nvidia is still alone at the top and growing far faster than the other two.
Data from YCharts.
Looking ahead, the market still expects Nvidia to maintain its lead throughout the fiscal year, even as Broadcom begins to close the gap.
Data from YCharts.
AMD is still well behind Nvidia, and while Broadcom is still a good choice in my opinion, Nvidia will likely hold on to its fast-growing title for some time to come.
Winner: Nvidia
AMD shares are outrageously expensive
Finally, let’s look at the rating. Because all three stocks are growing quickly, they are best evaluated using earnings forecasts. For the current fiscal year, AMD shares are far more expensive than Broadcom or Nvidia. In addition, Broadcom is also more than 50% more expensive than Nvidia’s.
Data from YCharts.
If we use next fiscal year’s forecasts, the trend remains the same: Nvidia stock looks dirt cheap compared to the other two.
Data from YCharts.
Here too, Nvidia is clearly the winner.
Winner: Nvidia
Investors should sell AMD shares for Nvidia shares
I think the biggest takeaway here is that AMD’s 2026 rally has probably outgrown itself and investors are discounting Nvidia far too much given its display is far more successful than AMD’s. Broadcom is still a solid stock pick with strong growth potential, but it’s just not as good a business as Nvidia right now.
Should you buy Nvidia stock now?
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Keithen Drury holds positions at Alphabet, Broadcom, Meta Platforms and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Broadcom, Meta Platforms and Nvidia. The Motley Fool has one Disclosure Policy.
Best Artificial Intelligence (AI) Stock: AMD, Nvidia or Broadcom was originally published by The Motley Fool
https://finance.yahoo.com/markets/stocks/articles/best-artificial-intelligence-ai-stock-222500424.html
