Nvidia vs. Broadcom: Which AI Chip Stock Has More Upside After Latest Earnings?
After their latest earnings reports, both Nvidia and Broadcom are shifting from being pure-play chipmakers to becoming architects of the entire data center infrastructure for artificial intelligence (AI). Investors now need to evaluate which company is better positioned to capture more value as hyperscalers invest heavily in AI hardware. Nvidia's second-quarter revenue reached $89 billion, driven by GPU sales alongside growing CPU and software offerings like Grace CPUs and CUDA platforms. Broadcom also reported strong performance with 73% of its AI semiconductor sales coming from custom accelerators (XPUs). The company is expanding into networking solutions and infrastructure software. Its VMware acquisition has complemented its chip business, enabling it to provide integrated hardware-software stacks for major clients like Google Cloud and OpenAI. Both companies are now competing across multiple layers of the data center stack—Nvidia with a more general-purpose approach while Broadcom focuses on custom-built engines for large hyperscalers. This shift makes choosing between them increasingly complex as both appear to be winning in different segments.
Topics: AI infrastructure Broadcom strategy data center architecture Nvidia earnings