Nvidia and Broadcom Report Strong Earnings with Diverging Growth Outlooks
Both Nvidia and Broadcom reported strong earnings in their most recent quarters. Nvidia's adjusted revenue grew by 106% year-over-year, while its diluted EPS increased by 120%. In contrast, Broadcom saw an 86% growth in adjusted net revenue and a 96% increase in adjusted diluted EPS. Both companies exceeded Wall Street estimates for their respective periods. A key difference emerged from forward guidance: Nvidia projected $108 billion in current-quarter revenue—$2.5 billion above expectations—and anticipates 70% annual growth by fiscal year 2028, far exceeding analyst forecasts of 44%. Broadcom also provided strong long-term AI semiconductor projections but at a more cautious pace compared to Nvidia. Gross margins for both companies remain high in the mid-70s range. However, both expect slight declines due to rising memory costs and product mix changes. Investors may find Nvidia's forward earnings multiple currently more attractive than Broadcom’s.
