Nvidia is the preferred AI chip stock over Micron and Broadcom when evaluated through Ray Dalio’s risk-adjusted framework. Nvidia trades at a forward P/E of 23 with a PEG of 0.55, compared to Broadcom’s P/E of 69, and analysts set a $303 consensus target implying 38% upside. Micron’s forward P/E of 5 and PEG of 0.12 appear cheaper, but its cyclical memory business and 711% one-year gain signal caution. Nvidia’s most recent quarter delivered $81.6 billion in revenue, up 85.2% year over year, with $48.55 billion in free cash flow, while guidance calls for $91 billion in Q2 FY27 at a 75% gross margin. The analysis notes that Nvidia’s valuation, durable cash flow, and defensible growth make it the cleanest expression of AI infrastructure demand, though risks include hyperscaler capex resets or a breakthrough in efficient inference.
