What’s the difference among AVGO, NVDA and TSM? Make it simple, NVDA designs the semiconductor, but TSM is the world’s largest “pure-play” foundry, the major task is responsible for manufacturing only; but AVGO has both functions, of course the foundry side cannot compare with TSM for TSM already runs 90% of the advanced process.
NVDA is on top of the world in case of market capitalization.
TSM is on top of the world in foundry of chip.
AVGO is on top of the world for it originates Silicon Valley.
Broadcom (AVGO) originates from Hewlett-Packard, of which their private garage is now marked as “birthplace of Silicon Valley”. Investors riding the current AI waves must know the background of these 3 companies no matter you buy their stocks or not.
Why there is a jumping gap in AVGO on Friday? For AVGO is helping ChatGPT maker OpenAI design and make its first-ever AI chip, according to reports. The partnership would help Broadcom challenge Nvidia’s dominance as an AI leader. Therefore, the price of NVDA dropped a little. Nowadays, competition is so keen, no matter in domestic market or in international market, we must know the background completely. Is this a threat to NVDA?
The sales volume of NVDA in Q2 of 2025 is $41.1 Billion with an annual growth of 56%, while AVGO is just $4.4 Billion with an annual growth of 46%. When it projects to the future, AVGO will be left far behind year after year. The market share will be eaten by NVDA continuously. The total volume is nearly at the difference of 10 times. Inside China, it has another explanation for BABA is producing their own chips and no longer need NVDA. Anyway, China still cannot produce chips to replace H20, RTX6000D or B30A, even these are at lowest level inside US. NVDA already established a research center in Shanghai so as to supply the chips that China needs and also would not violate the sanction of US.
US has also passed a bill that the plant of TSM is exempted from the sanction and still can supply what China wants according to the sanction of US.
People always say that AVGO is the next NVDA and TSM is also the next NVDA. It’s nothing wrong, but please treat it as an adjective rather than a process or plan. It would not come true in the next decade. Investors can buy it for longer term of investment like for pension fund but not for nowadays. Simply because of opportunity cost. But if you buy one stock per year, then 20 years later you can proudly tell others you have already purchased them 2 decades ago continuously.
Nowadays, it is not advice to change horse, no need to quit NVDA stocks and change to AVGO. For NVDA is nearly 10 times over the AVGO, and if they want to chase up 10% a year and NVDA even had no progress still need 10 years. However, NVDA is in its prime time now and the growth is not limited to 10% but practically 56%. You can hold both stocks but the focus should be in NVDA, for it is expected the first company to reach the market capitalization of 5, 6, 7 trillion or even 10 trillion. We can come back in 2035 to discuss when will AVGO surpasses NVDA.