NVIDIA and Broadcom report accelerating AI-driven revenue growth, with valuations 35-50 percent below analyst targets after June declines.
NVIDIA and Broadcom posted strong AI-related revenue growth, driving expectations of a rebound after sharp June pullbacks. NVIDIA’s Q1 FY2027 revenue reached $81.615 billion, up 85 percent year-over-year, with Data Center sales climbing 92 percent to $75.246 billion. Broadcom guided Q3 AI chip revenue to $16 billion, more than tripling year-over-year.
Both stocks remain 35-50 percent below analyst consensus targets despite the growth. NVIDIA’s Data Center Networking revenue surged 199 percent to $14.8 billion, while management guided Q2 revenue to $91.0 billion, excluding China data center compute. Broadcom’s AI chip demand is backed by hyperscaler design wins at Google, Meta, and OpenAI.
June saw NVIDIA slide nearly 12 percent, Microsoft drop 17 percent, and Broadcom retreat 20 percent, setting up potential upside as AI infrastructure spending accelerates.