Quick Summary
- Nvidia delivered $215.9 billion in fiscal 2026 revenue, representing a 65% year-over-year surge
- Broadcom reported $63.9 billion in fiscal 2025 revenue, divided between semiconductor and software divisions
- Nvidia’s Data Center segment alone contributed $193.7 billion in revenue
- Broadcom’s AI chip revenue climbed 74% year over year in its fiscal 2025 fourth quarter
- Analyst sentiment favors both companies, with Nvidia commanding stronger consensus backing
Nvidia and Broadcom stand as dominant forces within AI infrastructure. While both companies exhibit robust growth trajectories, their business models differ significantly. Let’s examine how their financial performance measures up.
Nvidia’s fiscal 2026 revenue reached $215.9 billion, marking a substantial 65% climb compared to the previous fiscal year.
The company posted a GAAP gross margin of 71.1%. Operating income totaled $130.4 billion, while net income came in at $120.1 billion.
The Data Center division generated $193.7 billion in revenue on its own. This single business segment now accounts for the overwhelming majority of Nvidia’s overall operations.
Nvidia operates beyond just semiconductor manufacturing. The company’s portfolio encompasses networking equipment and software platforms designed for constructing and deploying AI infrastructure, creating an integrated ecosystem that supports premium pricing power.
The primary vulnerability lies in revenue concentration. Nvidia’s income stream heavily depends on a single market cycle. Any slowdown in capital expenditure from major cloud providers could significantly impact results.
Broadcom Pursues a Diversified Strategy
Broadcom recorded $63.9 billion in revenue during fiscal 2025. This figure splits into $36.9 billion from its semiconductor business and $27.0 billion from infrastructure software operations.
The software portfolio, significantly expanded through the VMware transaction, provides Broadcom with greater business diversification compared to Nvidia.
Broadcom’s AI expansion centers on application-specific chips and Ethernet networking solutions. The company’s AI semiconductor revenue jumped 74% year over year during the fourth quarter of fiscal 2025.
Executives forecast $8.2 billion in AI chip revenue for the first quarter of fiscal 2026, powered by custom accelerator chips and Ethernet switching equipment deployed across hyperscale data centers.
Operating cash flow reached approximately $27.5 billion, with free cash flow trailing slightly at $26.9 billion.
Broadcom’s challenge is that its AI operations remain smaller in scale and depend on a more concentrated customer base.
Wall Street’s Perspective
Nvidia receives a Buy consensus rating from 53 Wall Street analysts. The breakdown includes 47 Buy recommendations and 4 Strong Buy ratings, with zero sell recommendations.
Broadcom earns a Moderate Buy consensus from 33 analysts. The rating distribution shows 29 Buy ratings and 1 Strong Buy, also with no sell recommendations.
Both equities enjoy favorable analyst coverage. Nvidia currently benefits from wider institutional support.
Bottom Line
Nvidia represents the larger enterprise with accelerating growth and commanding market position in AI computing infrastructure. Broadcom provides greater diversification spanning custom semiconductors, networking technology, and enterprise software. Broadcom’s Q1 fiscal 2026 AI semiconductor revenue guidance of $8.2 billion serves as an important benchmark in evaluating these two competitors.
