NVIDIA vs. Broadcom: The Smarter AI Stock to Buy for March 2026

March has traditionally been a strong month for the stock market, and artificial intelligence (AI) stocks have posted impressive gains for quite some time. Among the leaders, NVIDIA Corporation NVDA and Broadcom Inc. AVGO both reported strong results in their last quarterly earnings. But which one is the smarter buy? Let’s take a closer look –

Reasons to Be Bullish on NVIDIA

NVIDIA reported record fiscal fourth-quarter 2026 revenues of $68.1 billion, up 73% year over year and 20% sequentially. NVIDIA’s data center segment led the way, generating $62.3 billion in revenues, up 75% year over year and 22% quarter over quarter, largely fueled by major platform shifts in accelerated computing and AI, according to nvidianews.nvidia.com. The record data center revenues show NVIDIA’s dominant position in hyperscale AI infrastructure spending.

Looking ahead, NVIDIA projects fiscal first-quarter 2027 revenues of $78 billion, with a plus or minus 2%. This reflects robust underlying demand for data center products and management’s confidence in continued global AI adoption. CEO of NVIDIA, Jensen Huang, confirmed that “enterprise adoption of agents is skyrocketing. Our customers are racing to invest in AI compute — the factories powering the AI industrial revolution and their future growth.”

NVIDIA continues to maintain exceptional gross margins, suggesting its ability to command premium pricing for AI accelerators and graphics processing units (GPUs). The company reported a non-GAAP gross margin of 75.2% in the fiscal fourth quarter and expects margins to remain near 75% for the fiscal first quarter, even including stock-based compensation. This demonstrates NVIDIA’s ability to sustain profitability while absorbing additional costs.

Reasons to Be Bullish on Broadcom

Broadcom delivered strong fiscal fourth-quarter 2025 results. Its revenues for the fiscal fourth quarter reached a record $18 billion, up 28% year over year, mostly driven by a 74% increase in AI semiconductor revenues, according to investors.broadcom.com. This growth highlights robust growth in the AI infrastructure market.

Looking ahead, the company expects AI semiconductor revenues to double year over year in the fiscal first quarter 2026 to $8.2 billion, driven primarily by custom AI accelerators and Ethernet AI switches. Overall revenues for the quarter are projected at $19.1 billion, indicating another 28% year-over-year increase.

Broadcom’s strong profit margins demonstrate both its pricing power and operational efficiency. This is because the company’s fiscal fourth-quarter adjusted EBITDA of $12.2 billion is 68% of revenues. A few large caps operate at this massive level of profitability. Looking forward, Broadcom’s fiscal first-quarter adjusted EBITDA guidance remains exceptionally high at 67% of projected revenues, indicating continued efficiency and strength.

Additionally, in the fiscal fourth quarter, Broadcom produced $7.47 billion in free cash flow, equivalent to 41% of its revenues. This exceptionally strong cash flow gives the company significant flexibility to repay debt, reinvest in the business, reward shareholders with dividends, or buy back shares.

March 2026 AI Pick: Which Stock Stands Out, NVIDIA or Broadcom?

Both NVIDIA and Broadcom delivered strong quarterly results and remain confident about future growth. NVIDIA’s record data center growth confirms its dominance in hyperscale AI, while premium margins support sustained profitability. Meanwhile, Broadcom’s high margins and impressive free cash flow provide flexibility for investment, reinforcing its position as a leader in AI infrastructure.

However, Broadcom’s debt-to-equity ratio of 76.3% far exceeds NVIDIA’s 6.3%, suggesting it is more exposed to financial risk and potentially more sensitive to economic downturns.

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To top it off, NVIDIA’s shares are more attractively priced than Broadcom’s, offering investors a potential advantage. Per the price/earnings ratio, NVDA trades at 25.14 forward earnings compared with AVGO’s forward earnings multiple of 31.38.

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NVIDIA, thus, emerges as the superior buy, thanks to its dominant data center leadership, lower debt and attractive valuation. NVIDIA has a Zacks Rank #1 (Strong Buy), while Broadcom has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 stocks here.

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