Broadcom projects $16 billion in Q3 AI revenue, outpacing Nvidia’s 85% growth but targeting custom hyperscaler demand.
Nvidia reported $82 billion in Q1 revenue, up 85% year-over-year, driven by $75.246 billion in Data Center sales. Networking revenue within the segment surged 199%, underscoring CUDA’s expansion into rack-scale systems. The company guided Q2 revenue to $91.0 billion, excluding China.
Broadcom’s Q2 revenue rose 47.9% to $22.19 billion, with AI semiconductor revenue jumping 143%. CEO Hock Tan projected Q3 AI revenue of $16 billion, a 200% year-over-year increase, fueled by custom ASIC demand from hyperscalers. Broadcom’s stock has gained 40% over the past year, compared to Nvidia’s 22%.
The earnings highlight a shift as hyperscalers seek custom silicon to reduce reliance on Nvidia’s standardized platforms. Both companies’ growth reflects accelerating AI infrastructure investment.