NVDA是首选AI股票；相比博通等同行，其竞争护城河更强，自由现金流更高。

and just this past week OpenAI announced their new AI chip, Halapenio, which is actually better than Nvidia chips on some metrics.

and it's probably flowed into my investments in Microsoft, Google, and then Nvidia.

And this next year outlook is similar to how Nvidia gave their next year outlook in their latest earnings report. And they did it based on the supply they have secured. And Jensen said the exact same thing on the Nvidia earnings call.

And one of the things I always loved about Broadcom's business, and it's also one of the things that I love about Nvidia's business, but I started to learn about it when I was first analyzing Broadcom. And that's the fabulous semiconductor business model. Both Broadcom and Nvidia, they don't manufacture the chips themselves. They are designers. They design the technology, they get manufactured at partners like TSMC. So, that means that these are capex-light businesses where they're not building out these chip fabrication plants. So, they generate a ton of free cash flow.

But for context, Broadcom's AI business is still smaller than Nvidia's by a lot. Nvidia's data center business did $89 billion of revenue at higher margins. That was just in one quarter, the latest quarter. For context, Broadcom is guiding to $58 billion for the full year 2026.

Nvidia is the standard. They sell a general purpose solution designed to run any open or closed model. And with CUDA, it's really considered to be the first chip you look to. It's the top dog in the industry. And that's why it's seen such rapid growth in the AI build out. It's everyone's first choice.

However, that's given NVIDIA a lot of power. So, a lot of the larger tech companies like Google, OpenAI, Meta, even Amazon, they're starting to design their own chips. Because over the long run, they would like to reduce dependence on NVIDIA.

And there can definitely be cases where you can design a specific chip per specific use case and beat the general-purpose solution. OpenAI just did this with their Halpideus chip. OpenAI says that it beats NVIDIA's Blackwell chip.

Now, NVIDIA is already on their Vera Rubin that's shipping out to customers soon.

Anthropic also just did some big deals to buy NVIDIA compute as well. OpenAI, even though they developed Halpideus, they're still buying as much NVIDIA chips as they can.

Google even has some NVIDIA systems.

I personally think if you're in the AI bull camp and you think there's going to be a lot of demand for these semiconductors in the coming years, why wouldn't you just own Nvidia?

They are the first source of demand. They are the more innovative company with larger competitive advantages. Nvidia is the company driving the AI buildout. They are the first choice for most data centers being built out. And that's because they're a more general-purpose solution. They're easier to finance because they're general-purpose and can be used for any end customer.

So, if you're building a data center, you probably want to put an Nvidia system in there. OpenAI and Anthropic, they're still buying Nvidia chips.

SpaceX has now gone exclusive in using Nvidia chips in their data centers, and they are massively expanding in the coming years.

All the hyperscalers buy Nvidia. Amazon Web Services, Microsoft Azure, even Google Cloud does.

Nvidia has higher margins than Broadcom. Their entire business is AI-related. 90% is in the data center. They're free cash flow machine, same fabless business model as Broadcom.

And I would put my money on Jensen being able to secure even more demand and growing their supply.

Nvidia has the better balance sheet with more cash flow coming in. Nvidia has none of that. It's pure play AI, tons of cash on hand, negative 60 billion dollars of net debt, 127 billion dollars of free cash flow over the trailing 12 months.

On the way, same guidance of very high growth in the coming years. And they're going to be generating hundreds of billions of dollars of free cash flow in the coming years. So, purely in terms of competitive position, I think Nvidia is in a far better position than Broadcom.

Jensen, world-class historic figure, one of the best CEOs and operators in history. He's still in his prime, so I would rather have money in Nvidia. I think it's an easier investment story to understand.

So, personally, I built up a large position in Nvidia. And if you want my full thoughts on the investment thesis for Nvidia stock, go and watch two of my recent videos I did. They're on the channel, just search Nvidia.

That said, in the scenario where Nvidia does well, Broadcom is also going to do fantastic.