Nvidia's Peers Are Deeply Discounted Amid Data Center Boom
Nvidia's stock price has been hovering near its 52-week high at $230.36, only 2.6% below it. In contrast, four of its biggest AI chip peers are significantly lower: Advanced Micro Devices (AMD) is 18% below its high, Micron Technology (MU) is 19%, Broadcom (AVGO) is 28%, and Marvell Technology (MRVL) is 32%. This disparity seems unusual given that they all benefit from the same wave of data center spending.
Nvidia's revenue in the fiscal second quarter of 2027 was $96.2 billion, a 106% year-over-year increase. Data center revenue reached $89 billion, up 117%, and management guided the third quarter to $108 billion. CFO Colette Kress expects revenue growth of about 70% in fiscal 2028.
Broadcom's AI semiconductor revenue rose 221% year over year to $16.7 billion, and management forecasts $21.7 billion for the current quarter. CEO Hock Tan aims to double AI revenue to $115 billion next fiscal year and again in fiscal 2028.
Marvell's late-August report showed record revenue of $2.7 billion, up 37% year over year, with data center revenue growing 46%. CEO Matt Murphy raised the company's revenue outlook for fiscal 2027 and 2028.