Is the Real Fight in AI Between Broadcom and Nvidia (NVDA)?

Brasada Capital Management, an investment management company, released its Q3 2025 investor letter. A copy of the letter can be downloaded here. In the letter, the firm noted that the market entered the fourth quarter with equities near all-time highs and monetary policy easing. The firm also believes that this momentum could persist even though there are indications that a capital expenditure bubble exists. Further, the firm continues to invest selectively in companies with solid moats and cash flows, while steering clear of balance-sheet risks. In addition, you can check the fund’s top 5 holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Brasada Capital Management highlighted stocks such as NVIDIA Corporation (NASDAQ:NVDA). NVIDIA Corporation (NASDAQ:NVDA) offers graphics, compute, and networking solutions. The one-month return for NVIDIA Corporation (NASDAQ:NVDA) was -3.29%, and its shares gained 32.59% over the last 52 weeks. On December 15, 2025, NVIDIA Corporation (NASDAQ:NVDA) stock closed at $175.76 per share, with a market capitalization of $4.279 trillion.

Brasada Capital Management stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its third quarter 2025 investor letter:

“To understand OpenAI’s current position, the best historical analogy is not a recent mobile platform like iOS, but rather Microsoft Windows in the PC era. Just as Microsoft leveraged DOS, and the applications built for it to become the default operating system for the enterprise and then consumers, OpenAI has leveraged ChatGPT to aggregate hundreds of millions of users. This massive user base is the ultimate source of power, allowing OpenAI to exert gravitational pull on the entire AI value chain, from the chipmakers up to the cloud providers. This leverage is now being used to orchestrate the buildout of the AI ecosystem on OpenAI’s terms. Consider the chip layer.

NVIDIA Corporation (NASDAQ:NVDA): After receiving a $100 billion investment from Nvidia, OpenAI is deploying much of that capital to purchase Nvidia’s chips.

We added Broadcom to Equity Income in April; it has been our best year-to-date performer. A mega cap semiconductor conglomerate, Broadcom sells primarily design and critical components for leading-edge chips as well as data-center infrastructure software. We believe the real fight in AI is between Nvidia and Broadcom. With a fresh inflection underway, Broadcom is positioned to be the #2—if not #1—winner over the next decade…” (Click here to read the full text)

Analyst Explains How NVIDIA (NVDA) Can Reach $8 Trillion Market Cap

NVIDIA Corporation (NASDAQ:NVDA) is in 5th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 234 hedge fund portfolios held NVIDIA Corporation (NASDAQ:NVDA) at the end of the second quarter, compared to 235 in the previous quarter. In the third quarter of fiscal 2026, NVIDIA Corporation (NASDAQ:NVDA) reported $57 billion in revenues, marking a 62% year over year growth. While we acknowledge the risk and potential of NVIDIA Corporation (NASDAQ:NVDA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVIDIA Corporation (NASDAQ:NVDA) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered NVIDIA Corporation (NASDAQ:NVDA) and shared the list of top AI and technology stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.