Broadcom 's ( AVGO +1.64% ) shares have gained over 132% in the past year, driven by explosive demand for artificial intelligence (AI) -powered networking solutions and custom AI chips. The VMware acquisition is also helping transition its revenue mix toward a higher-margin software business.

Yet, despite the business momentum, the stock is expensive. With shares trading at about 41 times forward earnings , a significant portion of the upside is already priced in, leaving very little room for error.

However, AI leader Nvidia ( NVDA 0.65% ) is now trading at just 24.3 times forward earnings. Here's why Nvidia can prove to be a better pick in December 2025.

Multiple growth catalysts

Nvidia's valuation is backed exceptionally well by its robust execution capabilities a

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