Key Points
Nvidia (NASDAQ: NVDA), the largest producer of discrete GPUs for data centers, is gaining traction in the booming AI market. Analysts project its revenue and earnings per share (EPS) to grow at compounded annual growth rates (CAGRs) of 59% from fiscal 2026 to fiscal 2029. Currently, Nvidia trades at 23 times next year’s earnings.
Meanwhile, Broadcom (NASDAQ: AVGO) is capitalizing on the expanding AI inference market, which is crucial for enabling AI applications to access trained data. Broadcom’s AI chip sales surged 65% to $20 billion in fiscal 2025, accounting for 31% of its revenue. Projections indicate its AI chip sales could increase nearly sixfold to $115 billion by fiscal 2027, representing roughly two-thirds of its estimated $173.5 billion in total revenue.
Both companies show strong growth trajectories; Broadcom expects its revenue and EPS to increase at CAGRs of 62% and 77%, respectively, yet trades at a lower valuation of 22 times next year’s earnings compared to Nvidia.
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