Tech Giants Broadcom & Nvidia Cash In on Exploding AI Market
Broadcom and Nvidia, two tech giants, have reported impressive financials, driven by the burgeoning AI market. Broadcom expects its AI semiconductor revenue to reach $6.2 billion in the fiscal fourth quarter, while Nvda stock has returned $24.3 billion to investors and plans to add $60 billion to its share repurchase authorization.
The AI market is projected to grow at a staggering rate of 40%-55% annually, reaching $780 billion to $990 billion by 2027. Both companies are early leaders in this AI megatrend and have transformed into cash-flow machines.
Broadcom generated nearly $7.2 billion in cash from operations and produced over $7 billion in free cash flow in its fiscal third quarter. Meanwhile, Nvidia's AI semiconductor platform generated nearly $43 billion in cash from operations in the first half of its 2026 fiscal year. Nvidia's Blackwell platform data center sales surged 17% sequentially in the second quarter, contributing to the company's total revenue of $46.7 billion, with $41.1 billion coming from data center customers.
Investment advisory service The Motley Fool Stock Advisor has recommended additional potential investments in the AI sector, including Intel, Alphabet (Google), Microsoft, and Advanced Micro Devices (AMD), alongside Nvda stock and Broadcom, in the years 2021-2025.
Broadcom's AI revenue grew 63% to $5.2 billion in its fiscal third quarter of 2025, demonstrating the strong demand and growth potential in the AI market. As the AI market continues to expand, these tech giants are well-positioned to capitalize on this trend and drive further growth.
