Broadcom vs Nvidia: AI Chip Titans Vie for Dominance

Broadcom and Nvidia are both benefiting from the global artificial intelligence (AI) infrastructure build-out, but their approaches differ.

Broadcom's AI semiconductor revenue jumped 221% year over year to $16.7 billion in fiscal 2026's Q3, accounting for 56% of the company's total revenue. Management now expects AI chip revenue of $115 billion in fiscal 2027 and $230 billion in fiscal 2028.

Nvidia's AI growth is broadening beyond hyperscalers, with revenue from its AI cloud, industrial, and enterprise customers jumping 138% year over year in the second quarter, faster than the 102% year-over-year growth in its hyperscale business. However, a shift toward custom accelerators could pressure Nvidia's share of inference computing while creating additional revenue opportunities for Broadcom.

The threat is most direct among hyperscalers, which have the scale and resources to develop custom chips. However, Nvidia's growth is becoming broader, with a more reasonable valuation compared to Broadcom. At roughly 14.4 times forward one-year earnings, Nvidia trades at a lower multiple than Broadcom's 18.8 times.