This Super Semiconductor Stock Crushed Nvidia in 2025. Is It a Buy, Sell, or Hold in 2026?

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orders.Broadcom stock outperformed Nvidia stock in 2025, but its valuation could limit further blistering gains in the short term.10 stocks we like better than Broadcom ›Artificial intelligence (AI) development requires an astronomical amount of computing power, which can only be delivered through large, centralized data centers fitted with thousands of specialized chips. Nvidia (NASDAQ: NVDA) CEO Jensen Huang predicts annual spending on this infrastructure could hit $4 trillion by 2030, creating a massive financial opportunity for hardware suppliers.Nvidia's graphics processing units (GPUs) are currently the best chips in the world for AI development, but Broadcom's (NASDAQ: AVGO) alternative chips -- called AI accelerators -- are increasing in popularity among tech giants because they can be fully customized.Broadcom stock soared by 50% in 2025, comfortably beating Nvidia stock, which climbed by 36%. But is it too late for investors to board this train, or are the best gains yet to come?Image source: Getty Images.Nvidia's data center GPUs are a great plug-and-play solution for most AI companies, but as workloads become more complex, some developers see value in custom solutions that can be tailored to their specific needs. Alphabet, for instance, enlisted Broadcom's help to create its own AI accelerators called Tensor Processing Units (TPUs), which it used to develop its industry-leading Gemini family of AI models.Alphabet recently started selling its latest Ironwood TPUs to other developers, which is a big win for Broadcom as the designer and manufacturer. Anthropic, which is the AI start-up behind the Claude chatbot, placed a $10 billion order for Ironwood TPUs earlier this year, followed by another order worth $11 billion more recently, which is scheduled for delivery in late 2026. Broadcom says Anthropic is just one of four customers so far.But the chipmaker's AI opportunity doesn't stop there, because demand is also soaring for its data center networking equipment. Its Tomahawk Ethernet switches, for example, regulate how fast data travels between chips and devices, and they deliver industry-leading low latency and high throughput. 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