Broadcom's AI Ambition Outpaces Nvidia
Nvidia (NASDAQ: NVDA) and Broadcom (NASDAQ: AVGO) are two companies capitalizing on the artificial intelligence boom, but they're taking different approaches to achieving their goals. Nvidia has already established itself as a major player in the AI hardware market, while Broadcom is still building its presence.
In Nvidia's latest quarter, the company reported total revenue of $96.2 billion, up 18% from the prior quarter and 106% from a year ago. The majority of this revenue came from its data center segment, which includes both hyperscale cloud providers and industrial/enterprise customers building their own models.
Nvidia's chief financial officer Colette Kress stated that the company expects revenue to grow roughly 70% in fiscal 2028, based on what it can ship, not what customers want to buy. This indicates that demand is outpacing Nvidia's ability to deliver hardware.
Broadcom, on the other hand, has a more aggressive growth trajectory. The company reported $29.6 billion in revenue for its latest quarter, with AI semiconductor sales accounting for $16.7 billion and surging 221% from a year earlier and 54% from the prior quarter.
Broadcom's own projections indicate that it will reach $58 billion in AI semiconductor revenue this year, followed by roughly $115 billion in fiscal 2027 and $230 billion in fiscal 2028. This is significantly higher than Nvidia's expected growth rate of 70% in fiscal 2028.