Chipmakers Post Record Growth as AI Demand Reshapes Valuations
Nvidia, Broadcom, Marvell, and Micron report significant revenue expansion driven by AI infrastructure spending, with management guidance indicating continued supply-constrained growth through 2030.
The artificial intelligence infrastructure build-out has transformed semiconductor leaders into some of the fastest-growing large corporations globally. In their most recent quarterly reports, Nvidia, Broadcom, Micron, and Marvell all posted substantial year-over-year revenue increases, driven primarily by data center demand. While the immediate results reflect a surge in AI spending, the critical differentiator for long-term investors is how each company positions itself within the chip supply chain as the market matures.
According to data highlighted by GN stocks/chips, the sector is experiencing a bifurcation between platform leaders and custom silicon providers. Nvidia’s dominance in general-purpose AI computing is being challenged by custom accelerators from firms like Broadcom, while memory supplier Micron benefits from tight supply conditions. The divergence in valuation multiples across these four companies suggests that the market is pricing in different risk profiles for sustaining growth over the next four years.
Nvidia and Broadcom Lead Revenue Growth
Nvidia reported fiscal second-quarter revenue of $96.2 billion for the period ended July 26, a 106% increase year over year. Of this total, $89 billion originated from data center sales, underscoring the company's pivot toward enterprise AI workloads. Management guides for approximately 70% revenue growth in fiscal 2028, citing supply limitations rather than demand weakness as the primary constraint. At a valuation of roughly 14 times estimated fiscal 2028 earnings, the stock price reflects expectations for sustained platform relevance against emerging custom alternatives.
Broadcom’s AI semiconductor segment reached $16.7 billion in fiscal third-quarter 2026, surging 221% from the prior year. Custom accelerators, designed for specific clients, accounted for 73% of this revenue. CEO Hock Tan indicated that supply has been secured to double AI revenue to approximately $115 billion in fiscal 2027, with a target of $230 billion in the following year. The company trades at about 18 times expected fiscal 2027 earnings, a multiple that depends on its ability to deliver complex custom chips to a small number of hyperscale clients on schedule.
Marvell and Micron Target Niche Markets
Marvell Technology generated $2.7 billion in revenue in fiscal second-quarter 2027, with data center sales growing 46%. CEO Matt Murphy projects fiscal 2028 revenue of approximately $18 billion, up from around $12 billion in the current year, driven by the expansion of its custom business. However, the company commands the highest premium in the group at roughly 33 times expected fiscal 2028 earnings. This valuation requires that design wins ramp on time, making it an aggressive bet on the continuity of custom silicon adoption.
Micron Technology, the supplier of memory chips essential to AI hardware, reported fiscal third-quarter 2026 revenue of $41.5 billion, more than quadrupling the year-earlier figure. Non-GAAP gross margins expanded to 84.9% from 39% a year earlier, reflecting tight supply conditions. Guidance for the fiscal fourth quarter points to approximately $50 billion in revenue. Despite these margins, the stock trades at only about 6 times fiscal 2027 earnings, the lowest multiple among the four companies, as investors anticipate the cyclical nature of memory pricing to eventually compress profitability.
