NVIDIA and Broadcom Post Strong AI Driven Quarterly Earnings
NVIDIA and Broadcom both reported significant revenue growth driven by artificial intelligence demand, with NVIDIA leading in data center scale and Broadcom accelerating in custom chip sales.
NVIDIA reported fiscal second-quarter 2027 revenues of $96.2 billion, a 106% year-over-year increase. The Data Center segment accounted for $89 billion of this total, growing 117% annually. This performance was supported by a non-GAAP gross margin of 75%, up from 72.5% in the prior year. The company's ability to maintain high margins while scaling revenue reflects strong demand for its GPU and networking hardware.
Broadcom Inc. posted fiscal third-quarter 2026 revenues of $29.6 billion, rising 86% year over year. AI semiconductor revenues hit $16.7 billion, a 221% annual increase and a 54% sequential jump. Non-GAAP operating income grew 92% to $20.1 billion, while free cash flow climbed 95% to $13.7 billion. These figures indicate that Broadcom is effectively converting its custom chip and networking demand into substantial cash generation.
Forward Revenue Trajectories Diverge
NVIDIA guides fiscal third-quarter 2027 revenues to approximately $108 billion, implying a 12% sequential increase. The company states its Vera Rubin platform is in full production, positioning it for the next wave of AI investment. This guidance suggests continued momentum in its core data center business, driven by the release of new hardware architectures.
Broadcom expects fiscal fourth-quarter 2026 consolidated revenues to reach $34.8 billion, a 93% year-over-year rise. AI semiconductor revenues are projected to accelerate to $21.7 billion, representing a 236% annual increase. This outlook highlights Broadcom's reliance on custom accelerator and high-speed networking solutions to sustain its growth rate in the coming quarter.
Profitability and Valuation Metrics Compare
NVIDIA demonstrates higher efficiency with a 63.7% net profit margin compared to Broadcom's 42.9%. In terms of valuation, NVIDIA trades at a 22.85 forward price-to-earnings multiple, while Broadcom sits at 29.24. According to GN markets/earnings (en-US), these metrics suggest NVIDIA offers a lower entry multiple relative to its current earnings power, despite its larger scale.
NVIDIA's ecosystem advantage includes a diversified customer base and integrated software through CUDA, whereas Broadcom focuses primarily on custom chips and networking. The broader application of NVIDIA's technology across various AI workloads supports its sustained high-margin performance. Broadcom's growth, while rapid, is tied more closely to specific custom accelerator projects and networking infrastructure demands.
