Gotrade News - Nvidia and Broadcom are in focus as two distinct ways for investors to own the AI buildout. Both posted strong revenue growth, yet their business models and valuations now differ sharply.
Nvidia leads through GPU dominance, while Broadcom relies on custom chips and a noticeably cheaper valuation. That basic contrast shapes two very different strategic choices for US technology stock investors today.
Key Takeaways
- Nvidia revenue jumped 85% to $81.6 billion last quarter.
- Broadcom's AI semiconductor revenue surged 143% to $10.8 billion.
- Wall Street raised Broadcom targets even after a 12% drop.
According to The Motley Fool, Nvidia (NVDA) revenue rose 85% to $81.6 billion last quarter. That pace accelerated from growth of 73% and 62% in the two prior quarters.
Nvidia's data center segment grew 92% to $75.2 billion in the quarter ended April 26, 2026. The stock now trades at roughly 25 times forward earnings, a slightly lower multiple than Broadcom.
Two Different Business Models
Broadcom (AVGO) revenue climbed 48% to $22.2 billion in its second fiscal quarter. AI semiconductor revenue surged 143% to $10.8 billion from a year earlier.
Broadcom guided its AI chip revenue to about $16 billion for the current quarter. The company also targets more than $100 billion in AI revenue across fiscal year 2027.
Nvidia designs general-purpose GPUs and faces a custom-chip threat from large customers like Alphabet and Meta. Broadcom instead designs custom AI accelerators built specifically for those very same cloud clients.
Meta (META) is among the customers Broadcom serves, alongside OpenAI, Alphabet, and Anthropic. That places Broadcom right at the center of hyperscaler AI spending today.
Nvidia's revenue growth accelerated steadily from 62% then 73% in the two earlier quarters. That clear trend points to still-strong demand for its high-end data center GPUs.
Consensus analysts peg Broadcom revenue at $106 billion in 2026 and $166 billion in 2027. They further project about $218 billion for the year 2028 as AI spending compounds.
Wall Street Responds
As reported by The Motley Fool, Jefferies raised its Broadcom target from $500 to $550. KeyBanc lifted its target to $575, while JPMorgan moved its target to $580.
About 93% of all the analysts now rate Broadcom a buy or strong buy. The stock closed Thursday at $419.46, falling a sharp 12.47% on the latest trading session.
After that sharp drop, Broadcom now trades under 23 times next year's expected sales. A PEG ratio near 0.55 makes its valuation look cheaper to many growth investors.
JPMorgan even projects Broadcom revenue could reach roughly $300 billion by the year 2028. That highly bullish estimate reflects deep optimism about a long and durable AI chip spending cycle.
Overall, Nvidia still leads on raw growth and a dominant GPU market share today. Broadcom, by contrast, offers a custom-ASIC model at a meaningfully lighter valuation for investors.
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