Why These Two Stocks Could Outperform Nvidia in 2025

The AI revolution has ignited a gold rush in tech investing, with Nvidia (NVDA) often hailed as the undisputed leader. But what if the next million-dollar returns are lurking elsewhere? As the market matures, two under-the-radar stocks—Broadcom (AVGO) and Palantir (PLTR)—are emerging as contenders to eclipse even the likes of Nvidia. Let’s dissect why these companies could be the true “millionaire-maker” plays of 2025 and beyond.

Broadcom (AVGO): The AI Chip Goliath

Broadcom’s dominance in application-specific integrated circuits (ASICs) positions it at the heart of the AI infrastructure boom. While Nvidia’s graphics processing units (GPUs) have been the go-to for general AI tasks, ASICs are purpose-built chips that deliver unmatched efficiency for specific applications—a critical edge as companies seek to optimize data centers.

Key Catalysts:
- 220% AI Revenue Surge: Broadcom’s AI chip revenue hit $12.2 billion in fiscal 2024, with a $60–$90 billion addressable market over three years.
- 55–60% Market Share: JPMorgan estimates Broadcom controls the majority of the custom AI chip market, thanks to partnerships with giants like Microsoft and Meta.
- Undervalued Metrics: A PEG ratio of 0.47 suggests the stock is trading below its growth potential. Analysts at CFRA see a 36.4% upside, with a $265 price target (vs. its March 2025 close of $194.23).

Beyond AI, Broadcom’s $61 billion VMware acquisition has turbocharged its software division, creating a hybrid hardware-software powerhouse. This diversification reduces reliance on any single tech trend, a stark contrast to Nvidia’s GPU-centric model.

Palantir (PLTR): The AI Operating System for Enterprise

While Palantir isn’t a household name, its AI software is quietly transforming industries. The company’s Maven platform integrates generative AI into workflows, enabling governments and corporations to analyze data at scale. A $5.4 billion remaining deal value (RDV) as of Q4 2024 signals strong customer commitment, up 40% year-over-year.

Key Catalysts:
- NATO Contract & Enterprise Momentum: Palantir’s $130 million NATO deal for its Maven system underscores its role in critical infrastructure. Commercial wins, like a $40 million telecom contract, highlight its expanding addressable market.
- AI Software Gold Rush: The global AI software market is projected to hit $153 billion by 2028 (IDC), growing at 41% annually. Palantir’s early foothold in this space could translate to decades of growth.
- Valuation Justification: Despite a high trailing P/E of 517x, its forward P/E of 182x accounts for margin improvements and scaling. CFRA’s $127 price target implies a 51.8% upside from its March 2025 close of $83.65.

Palantir’s vision of becoming an enterprise AI operating system—comparable to Windows or iOS—suggests it could own a critical layer of the AI stack, bypassing the hardware competition altogether.

Why These Stocks Over Nvidia?

Nvidia’s GPUs remain vital for AI’s early stages, but the market is evolving. Broadcom’s ASICs are better suited for hyperscale data centers, where efficiency trumps flexibility. Meanwhile, Palantir’s software plays a role in AI adoption at the enterprise level, a space where Nvidia’s reach is limited.

Risks to Consider

• Broadcom: Overexposure to cloud/AI customers could magnify losses if demand wanes.
• Palantir: High valuations require flawless execution; competition from Microsoft and Salesforce looms.

Conclusion: The Case for Long-Term Outperformance

Both Broadcom and Palantir offer compelling narratives for multiyear growth, backed by hard data:
- Broadcom’s $12.2 billion AI revenue and 55% market share signal a structural advantage in the AI chip race.
- Palantir’s $5.4 billion RDV and 41% annual market growth position it to capitalize on enterprise AI adoption.

Analysts’ targets—$265 for AVGO and $127 for PLTR—imply combined upside exceeding $45 billion in market cap gains, far outpacing Nvidia’s recent trajectory. While no stock is risk-free, these two offer a rare blend of scalable revenue, underappreciated valuations, and defensible moats in an AI-driven economy.

For investors seeking to sidestep the crowded Nvidia trade, Broadcom and Palantir could be the keys to unlocking the next wave of wealth in tech.