Nvidia (NVDA) vs. Broadcom (AVGO): Which AI Stock Is a Better Buy After the OpenAI Scare?

On October 8, the Financial Times reported OpenAI's annualized revenue of about $50 billion, roughly $20 billion below figures widely reported in September, and AI stocks sold off, with Nvidia down about 3%, erasing roughly $170 billion in value, and Broadcom down more than 4%. Bloomberg later reported OpenAI expects to reach or exceed $70 billion in annualized revenue by year-end, with the gap stemming from whether sales through cloud partners are counted. The article argues Nvidia's broad customer base and valuation, with a forward non-GAAP P/E of 25.50x about 40% below its 5-year average of 42.15x, suggest the selloff went too far. For Broadcom, its custom AI chip work for OpenAI under a 10-gigawatt deal drew attention to a Wall Street Journal report of talks to arrange more than $50 billion in financing, with about $30 billion of debt for the next phase, though those talks were described as early. The $70 billion figure is a projection, and the chip rollout runs through 2029.

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