NVDA vs. AVGO: Why Investors Liked Broadcom’s Earnings More Than Nvidia’s

Investors reacted very differently to the latest results from chipmakers Nvidia NVDA -0.96% ▼ and Broadcom AVGO +1.47% ▲ . Following its Q4 FY26 results, NVDA stock has declined about 6%. Meanwhile, Broadcom shares have gained roughly 5% since reporting Q1 results. While Nvidia delivered strong numbers driven by continued AI demand, the market response was relatively muted as investors had already priced in perfection. In contrast, Broadcom’s earnings triggered a more enthusiastic reaction from investors, as the company delivered a genuine upside surprise.

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Broadcom Beats Nvidia in the Earnings Reaction Game

In a market where expectations matter most, Broadcom delivered a clear beat. The company reported Q1 revenue of $19.31 billion, up 29% year-over-year and above estimates, driven by $8.4 billion in AI revenue. Looking ahead, it expects about $22 billion in Q2 revenue.

Broadcom surprised on multiple fronts. Its AI revenue nearly tripled year-over-year, its custom chip business — serving hyperscalers like Google GOOGL -0.55% ▼ , Meta META -2.05% ▼ , and Apple AAPL -1.26% ▼ — is growing faster than expected, and management raised forward guidance with unusual confidence.

On the other hand, investors had entered Nvidia’s report with very high expectations, which muted the market reaction. Notably, Nvidia reported earnings of $1.62 per share versus estimates of $1.54, while revenue surged 73% year-over-year to $68.1 billion. For fiscal 2026, revenue reached $215.9 billion, up 65%. Management also signaled continued heavy investment in AI infrastructure instead of boosting shareholder returns, which kept investors cautious.

Benchmark Analyst Weighs In

Five-star-rated analyst Cody Acree at Benchmark said, “Following the disappointing market reception of Nvidia’s stronger-than-expected results and outlook, the Street was poised for Broadcom shares to react with similar lethargy.” However, he added that Broadcom stock climbed as investors welcomed its stronger Q2 outlook and forecast that AI revenue could surpass $100 billion next year.

Acree has a Buy rating on both NVDA and AVGO stocks.

NVDA OR AVGO: Which Stock Offers Higher Upside, According to Analysts?

Using TipRanks’ Stock Comparison Tool, we compared NVDA and AVGO to see which stock analysts see offering more upside in 2026.

Overall, analysts have Strong Buy ratings on both stocks. Nvidia’s average price target of $272.16 implies about 50% upside, while Broadcom’s target of $460.40 suggests roughly 37% upside from current levels.

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