How Broadcom’s Latest Earnings Report Could Impact Nvidia Investors

The demand for chips used in training and deploying artificial intelligence (AI) models in data centers has skyrocketed in recent years. Nvidia (NASDAQ: NVDA) has emerged as the top player in this market, outperforming other chipmakers and dominating the AI semiconductor space.

Nvidia’s revenue from selling AI chips far surpasses that of its competitors. In the third quarter of fiscal 2025 (ending on Oct. 27), Nvidia raked in $30.8 billion from data center chip sales, marking a significant 112% growth compared to the same period last year. In contrast, Advanced Micro Devices, Nvidia’s closest rival in data center GPUs, is projecting $5 billion in data center GPU revenue for this year.

While GPUs are a popular choice for cloud service providers for AI model training and inferencing, other types of chips are also in demand. Broadcom (NASDAQ: AVGO) experienced rapid growth in the demand for its application-specific integrated circuits (ASICs) in the last fiscal year, driven by the surge in AI-related demand.