<div id="readability-page-1">Artificial intelligence (AI) stocks led the market higher last year as investors bet on the potential of this technology to revolutionize many industries -- and our daily lives. The S&amp;P 500 index climbed 23% and the Nasdaq advanced 28%, led by AI players. Even the Dow Jones Industrial Average, which isn't heavily loaded with tech stocks, benefited from excitement about AI -- its newest member, Nvidia (NVDA -0.02%), posted the biggest gain in the benchmark. And the good news for investors is the AI momentum is likely to continue since this technology still is in the early days of its growth story. Data centers are building out infrastructure -- Nvidia chief Jensen Huang says $1 trillion of outdated computers worldwide need to be updated for accelerated computing. Companies also are in the initial stages of applying AI to improve their efficiency. This should translate into more growth ahead for key AI players such as Nvidia and another popular AI player: networking giant Broadcom (AVGO 0.29%). So there's still plenty of time to get in on the AI growth story. But if you could only choose one of these AI growth stocks for 2025, which one should you go for? Let's find out. <div><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MDMzMjUvZ2V0dHlpbWFnZXMtNjEzMzQ1NTU2LmpwZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="467" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MDMzMjUvZ2V0dHlpbWFnZXMtNjEzMzQ1NTU2LmpwZyZ3PTcwMA"/>Image source: Getty Images. </div> <h2>The case for Nvidia</h2> Nvidia has been the go-to company for AI customers and the go-to stock for AI investors. And for good reason. The tech giant has built an AI empire, not only selling the world's fastest graphics processing units (GPUs) to power key AI tasks, but also offering a full range of AI products and services. This has resulted in double- and triple-digit revenue gains in recent quarters and record earnings. In the most recent quarter, revenue reached a high of more than $35 billion. The company is likely to stay in its leadership position for one key reason: Nvidia is greatly focused on constant innovation, promising to update its GPUs annually. This should make it very difficult for a rival to unseat this player. And in the coming months, one particular thing may push Nvidia's shares higher even after last year's huge gain. The company now is launching its much-awaited Blackwell architecture, a customizable platform offering seven different chips, various networking options, and more. Demand has surpassed supply so it's clear this new product is on its way to becoming a success. Nvidia even predicts several billion dollars in revenue during this first quarter of commercialization. <h2>The case for Broadcom</h2> Broadcom is the name behind thousands of products used everywhere from data centers to your smartphone. A statistic to show just how big this company is in the networking space: More than 99% of all Internet traffic passes through a Broadcom technology. The company has greatly benefited from the AI boom as we can see through recent earnings figures. AI revenue, driven by demand for custom AI accelerators and networking, soared 220% in the latest fiscal year to more than $12 billion. And this, representing 41% of Broadcom's semiconductor revenue, pushed semiconductor revenue to a record of $30 billion. In the recent quarter, AI networking revenue accounted for 76% of total networking revenue and climbed 158% thanks to demand for Tomahawk and Jericho Ethernet switches. Now in the current quarter, Broadcom expects this strength to continue thanks to demand from big cloud service providers. Broadcom also is winning thanks to its integration of cloud virtualization company VMware -- the acquisition closed a year ago. VMware operating margin has reached 70%, and Broadcom says it's on the path to delivering adjusted EBITDA that surpasses its goal of $8.5 billion after three years. All of this means AI and the VMware addition are set to drive more growth at Broadcom in 2025. <h2>Should you buy Nvidia or Broadcom?</h2> Nvidia and Broadcom have been winning during this AI boom, as reflected in their earnings as I mentioned above, and their share price performances. Nvidia advanced 171% last year, while Broadcom climbed more than 107%. And the great news for investors in these players is they both have what it takes to gain through the next stages of AI development. So, choosing between them isn't easy. That said, if you're interested in value, one element may push you in one particular direction. Both players' valuations have increased over the past year, but Broadcom still is the least expensive of the two, trading at 36 times forward earnings estimates versus Nvidia's 47. It's true Nvidia is worth the premium considering its dominance in the AI world and likelihood of staying on top. But investors looking for a bargain should scoop up Broadcom because, at this level, it represents a fantastic opportunity to get in on a top AI growth story for 2025. </div>

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The article compares Nvidia and Broadcom as top AI growth stocks for 2025. Nvidia has seen significant revenue growth, driven by its innovative GPUs and upcoming Blackwell architecture, while Broadcom has benefited from a surge in AI revenue, particularly from networking products. Both companies have performed well in the AI boom, with Nvidia's stock rising 171% and Broadcom's by over 107% last year. However, Broadcom is currently the more affordable option, trading at 36 times forward earnings compared to Nvidia's 47, making it an attractive choice for value investors.

- AI stocks significantly boosted market performance in 2024, with the S&P 500 rising 23% and the Nasdaq 28%, driven by companies like Nvidia and Broadcom.  
- Nvidia continues to lead in AI innovation, reporting over $35 billion in revenue and launching its new Blackwell architecture, while Broadcom's AI revenue surged 220% to over $12 billion, benefiting from its VMware acquisition.  
- Investors face a choice between Nvidia's premium valuation and Broadcom's more affordable price, with both companies poised for growth in the evolving AI landscape.

Better AI Growth Buy for 2025: Nvidia vs Broadcom