NVIDIA Corporation (NVDA) and Broadcom Inc. (AVGO) have experienced significant stock price increases of 35.5% and 31.9% year-to-date, respectively, driven by the acceleration of artificial intelligence (AI) adoption. NVIDIA reported a 73% year-over-year increase in data center revenues amounting to $39.1 billion for Q1 fiscal 2026 but is facing challenges from U.S. export restrictions that resulted in a loss of $2.5 billion in expected chip sales to China.
Meanwhile, Broadcom has seen its AI-related revenues grow by 46% year-over-year to $4.4 billion and expects them to jump 60% in the upcoming quarter. The company is on track to ship next-generation 3-nanometer XPUs to hyperscale customers in 2025 and targets a serviceable market for XPUs between $60 billion and $90 billion by fiscal 2027.
NVIDIA’s earnings estimate remains steady at $4.26 per share for fiscal 2026, expected to grow by 42.5%. In contrast, Broadcom’s earnings estimate slightly dipped to $6.63 per share, representing 36.1% growth. Despite NVIDIA’s leadership in GPU technology, Broadcom’s diversified business model and consistent performance make it appear as the more attractive investment option, currently bearing a Zacks Rank of #2 (Buy) compared to NVIDIA’s #3 (Hold).
