Heat olive oil in a large Dutch oven over medium heat. Add diced onions and bell peppers. Cook until onions are translucent and peppers are softened.

Add minced garlic, cumin, and chili powder. Cook for 30 seconds to toast the spices.

Pour in chicken broth and diced tomatoes. Use a wooden spoon to scrape up any golden bits from the bottom of the pot. Bring to a gentle boil, then reduce heat to a simmer.

Add softened cream cheese in small chunks. Whisk until fully incorporated, turning the liquid into a pale, creamy orange hue.

Lower the heat to its lowest setting. Gradually add shredded cheddar cheese and Monterey Jack cheese. Stir in a circular motion until the cheese is smooth and velvety.

Season with salt to taste. Serve hot with sour cream, avocado slices, and tortilla chips.