Promising AI Chip Stocks to Consider Following Recent Declines

Key Points

• Nvidia’s revenue grew 85% year over year in its most recent quarter.

• Advanced Micro Devices expects its revenue growth to accelerate in the second quarter.

• Broadcom shares fell hard despite 143% growth in AI chip revenue.

Nvidia (NASDAQ: NVDA) recorded an 85% year-over-year revenue increase in its fiscal first quarter of 2027, totaling $81.6 billion, driven by a 92% surge in data center revenue. Despite a recent decline of approximately 18% from its 52-week high, the company maintains a market capitalization of about $4.9 trillion. Looking ahead, Nvidia anticipates second-quarter revenue of around $91 billion, which would represent a 95% year-over-year growth, assuming no data center compute revenue from China.

Meanwhile, Advanced Micro Devices (NASDAQ: AMD) reported a 38% year-over-year increase in first-quarter revenue to $10.3 billion and expects Q2 revenue of approximately $11.2 billion, a 46% increase. AMD’s stock declined by about 17% after peaking at $542.52 earlier this month. Broadcom (NASDAQ: AVGO) experienced a significant drop despite reporting a 143% rise in AI chip revenue to $10.8 billion for its fiscal second quarter, with overall revenue hitting $22.2 billion, a 48% increase year-over-year.