NVIDIA Corporation (NVDA) reported record fiscal fourth-quarter 2026 revenues of $68.1 billion, a 73% increase year-over-year, with its data center segment generating $62.3 billion—up 75% year-over-year. The company expects fiscal first-quarter 2027 revenues of $78 billion, with a non-GAAP gross margin of 75.2%, maintaining premium pricing for its AI accelerators and graphics processing units (GPUs).
Broadcom Inc. (AVGO) announced fiscal fourth-quarter 2025 revenues of $18 billion, a 28% increase year-over-year, primarily driven by a 74% rise in AI semiconductor revenues. For the fiscal first quarter 2026, Broadcom anticipates AI semiconductor revenues to double year-over-year to $8.2 billion, with projected overall revenues of $19.1 billion, also indicating a 28% increase from the previous year.
Despite strong performance from both companies, NVIDIA is viewed as the superior buy due to its lower debt-to-equity ratio of 6.3%, compared to Broadcom’s 76.3%, and a more attractive price-to-earnings ratio of 25.14 versus Broadcom’s 31.38. NVIDIA holds a Zacks Rank of #1 (Strong Buy), while Broadcom has a Zacks Rank of #3 (Hold).
