Nvidia (NVDA) vs. Broadcom (AVGO): Which AI Stock Is a Better Buy After the OpenAI Scare?

On October 8, the Financial Times reported that OpenAI's annualized revenue was about $50 billion, roughly $20 billion below figures widely reported in September. AI stocks sold off. Nvidia Corporation (NASDAQ:NVDA) dropped about 3%, erasing roughly $170 billion in value, while Broadcom Inc. (NASDAQ:AVGO) fell more than 4%. Just hours later, Bloomberg reported that OpenAI expects to reach or exceed $70 billion in annualized revenue by year-end. The gap came down to how revenue was counted.

The higher figure includes sales through OpenAI's cloud partners, which OpenAI's own number leaves out. Bloomberg's report suggests OpenAI could reach $70 billion in annualized revenue by year-end, although achieving that target would require substantial growth from September's $50 billion run rate. If the market overreacted to OpenAI's revenue figures, the selloff may have created buying opportunities. These AI stocks may deserve a closer look.

Why I Believe the Market Made a Mistake Selling Nvidia

Nvidia sells to nearly every major AI lab and cloud provider, so one company's revenue figure says little about its overall demand. Jensen Huang said last month that Nvidia expects to double the number of chips it sells in 2027, and management has guided to about 70% revenue growth in fiscal 2028. The company also added a record $150 billion to its buyback, a strong sign of confidence in its cash flow.