Broadcom vs. Nvidia: Earnings Show Chipmakers' Growth Prospects
Nvidia and Broadcom are two of the largest chipmakers in the world. Both companies have reported strong earnings results, with Nvidia's adjusted revenue growing 106% year over year and Broadcom's adjusted net revenue growth coming in at 86%. The companies also provided guidance that exceeded analyst expectations.
Nvidia forecasted revenue of $108 billion for its current quarter, beating estimates by $2.5 billion. It also predicted 70% annual revenue growth in fiscal year 2028, with most of that occurring in calendar year 2027. Broadcom, on the other hand, projected revenue of $34.8 billion in its current quarter, slightly below analyst estimates.
Gross margin is another key metric to watch for both companies. Nvidia's gross margins currently stand at around 75%, but are expected to narrow to the 71% to 72% range as the fiscal year progresses. Broadcom's consolidated gross margin was also 75% in its most recent quarter, but is anticipated to slip to 73% in the current quarter.
Finally, Nvidia still trades at a cheaper forward earnings multiple than Broadcom. With AI chip revenue of nearly $89 billion last quarter and a fast-growing CPU business, investors may find Nvidia's growth more attractive than Broadcom's.