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Broadcom’s AI Momentum Tests Nvidia’s Long‑Term Lead

Record XPU sales alongside a reported $10 billion rack order bolster investor bets on a credible alternative to GPU‑led AI.

Overview

  • Nvidia posted record fiscal Q2 2026 revenue of $46.7 billion, including $39 billion from data centers, and guided to $54 billion next quarter.
  • Broadcom reported record Q3 revenue of $15.9 billion, with AI-specific sales up 63% to $5.2 billion and semiconductor revenue rising 26% to $9.2 billion.
  • XPUs accounted for 65% of Broadcom’s AI revenue in Q3 as three hyperscale customers pushed for compute self‑sufficiency.
  • Broadcom says it secured a $10 billion order for AI racks from a fourth, unidentified customer after speculation incorrectly pointed to OpenAI.
  • Investors are weighing energy‑efficient, task‑specific ASICs against Nvidia’s flexible GPUs, with Broadcom shares up 96% over the past year versus 33% for Nvidia.