Broadcom CEO Hock Tan Announces Major Boost for Nvidia Stock Investors
Broadcom CEO Hock Tan recently announced a significant boost for Nvidia stock investors, emphasizing the ongoing demand for artificial intelligence (AI) technology. This comes at a time when Nvidia has witnessed remarkable success, fueled by the increasing necessity for its graphics processing units (GPUs) in AI applications.
Broadcom’s Strong Financial Performance
In its fiscal fourth quarter for 2025, ending on November 2, Broadcom reported record revenues of $18.01 billion, marking a 28% increase year over year. This performance surpassed analyst predictions, which estimated revenue of $17.46 billion.
Broadcom’s adjusted earnings per share (EPS) also exceeded expectations, rising by 37% to reach $1.95. The company benefited from a significant surge in AI-related revenue, which grew by 74% year over year, contributing to its robust financial results.
Key Financial Highlights
- Revenue: $18.01 billion
- Year-over-year growth: 28%
- Adjusted EPS: $1.95
- AI Revenue Growth: 74%
- Free Cash Flow: $7.47 billion (41% of revenue)
Future Prospects and Backlog
Tan revealed that renowned AI start-up Anthropic accounted for a substantial portion of a $10 billion increase in backlog. Additionally, an impressive $11 billion chip order from Anthropic is expected to be fulfilled by late next year. Broadcom’s total backlog currently stands at a striking $73 billion, indicating sustained demand in the market.
Looking ahead, Tan provided an optimistic revenue forecast for the first quarter, estimating $19.1 billion—an expected increase of 28% from the same quarter last year.
Nvidia’s Market Position
Nvidia, valued at approximately $4.4 trillion, continues to dominate the data center GPU market, holding a 92% share. Despite concerns about a potential AI bubble, experts believe that the demand for Nvidia’s products will continue to grow as AI adoption spreads further.
Nvidia’s Financial Outlook
- Expected Fiscal Year Revenue: $213 billion
- Projected Revenue Growth: 77% this fiscal year, 37% in fiscal 2027
- Market Share: 92% of the data center GPU market
The forecast indicates that Nvidia remains well-positioned to capture the benefits of the increasing reliance on AI technologies. With a valuation of 24 times next year’s expected earnings, Nvidia presents an attractive opportunity for investors.
Conclusion
Broadcom’s recent results and proactive announcements from Hock Tan reflect robust demand for AI technology. These developments are encouraging for Nvidia investors, as both companies continue to report substantial growth. The outlook for AI remains promising, and both Broadcom and Nvidia are key players in this evolving market.
