Lyle Daly, The Motley Fool June 3, 2026 3 min read NVDA AVGO INTC Nvidia (NASDAQ: NVDA) and Broadcom (NASDAQ: AVGO) are the top artificial intelligence (AI) chipmakers by market cap, and both delivered record results in their most recent quarters. Of the two, Broadcom has been the better investment in 2026 and over the last year, but Nvidia is the winner if you look further back. Its five-year and 10-year returns are much higher than Broadcom's.
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Comparing the numbers Nvidia recently reported earnings for the first quarter of its 2027 fiscal year, which ended April 26. As usual, it was a blockbuster quarter, with revenue surging 85% year over year to $81.6 billion. Data center revenue jumped 92% to $75.2 billion.
In March, Broadcom reported earnings for the first quarter of its fiscal 2026, which ended Feb. 1. The results were impressive, albeit not as explosive. Revenue increased 29% year over year to $19.3 billion, but AI revenue specifically was up 106% to $8.4 billion.
Sales favor Nvidia, and it's also much cheaper, trading at 24 times forward earnings. Broadcom trades at 39 times forward earnings -- its share price increased 40% over the last three months, and its valuation has arguably gotten stretched. However, Broadcom is also earlier in its AI growth curve, and earnings could ramp up quickly from here.
Management believes revenue from just AI chips could reach $100 billion in 2027. The bull case for each chipmaker Although the AI chip market has gotten more competitive, Nvidia remains the clear leader. Nvidia GPUs are the default choice for AI companies, and its CUDA software helps keep customers on its platform.
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