Broadcom's Aggressive Bet on AI Chips vs Nvidia's Diversified Dominance
Nvidia and Broadcom are two companies making fortunes from the artificial intelligence (AI) boom.
Nvidia reported total revenue of $96.2 billion for the quarter ended July 26, up 18% from the prior quarter and 106% from a year ago.
About $89 billion of that came from its data center segment, driven by two types of customers: big cloud providers and what Nvidia lumps together as 'ACIE,' which includes industrial and regular enterprises starting to build their own models.
Nvidia guided total revenue for the next quarter to about $108 billion, plus or minus 2%, saying growth would be driven primarily by continued strength in the AI data center business.
Broadcom reported $29.6 billion in revenue for the quarter ended Aug. 2, up 86% year over year, with AI semiconductor sales accounting for $16.7 billion and surging 221% from a year earlier and 54% from the prior quarter.
Broadcom projects about $58 billion in AI semiconductor revenue for fiscal 2026, followed by roughly $115 billion in fiscal 2027 and $230 billion in fiscal 2028.