Broadcom vs Nvidia: Whose AI Revenue Will Grow Faster?

Nvidia and Broadcom are two technology companies that have been benefiting from the artificial intelligence (AI) boom. While both companies are making significant profits, their growth strategies differ.

Broadcom's AI semiconductor revenue is expected to double in both fiscal 2027 and 2028, reaching $230 billion by the latter year. In contrast, Nvidia's AI business is growing from a much larger and broader base, but its revenue growth forecast for fiscal 2028 is significantly lower at around 70%.

Broadcom's aggressive growth strategy may be riskier due to its customer concentration. The company relies on a smaller number of massive customers building custom chips at scale, which could lead to greater volatility if one or more of these customers pull back or change direction.

Nvidia, on the other hand, has a more diversified base and sells a broad range of chips and AI systems to various customers, including cloud giants, governments, start-ups, and enterprise clients. This makes its revenue growth potentially more stable in the long run.