Nvidia and Broadcom Report Strong Earnings
Nvidia (NASDAQ: NVDA) and Broadcom recently released their earnings for the quarters ending July and early August, respectively. Nvidia reported a remarkable 106% year-over-year revenue growth, with diluted earnings per share (EPS) soaring 120%. In parallel, Broadcom recorded an 86% increase in adjusted net revenue and a 96% rise in adjusted diluted EPS, surpassing Wall Street estimates for both companies.
Looking ahead, Nvidia forecasted $108 billion in revenue for its current quarter, exceeding analyst expectations by $2.5 billion. Meanwhile, Broadcom’s revenue projection stood at $34.8 billion, slightly below the anticipated $35.03 billion, but its AI semiconductor revenue could reach $230 billion by 2028. Currently, Nvidia holds a substantial lead in AI chip revenue, generating $89 billion last quarter compared to Broadcom’s nearly $21 billion.
Both companies’ gross margins remain impressive at approximately 75%, although Nvidia anticipates a slight decline due to rising memory costs. However, Nvidia’s market cap of over $5 trillion enables significant growth potential, with a projected annual revenue growth rate of 70% in fiscal year 2028, outpacing the expected 44% growth estimated by analysts.
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