{"version":1,"type":"story","url":"https://digestai.news/story/wall-street-analysts-predict-broadcom-may-outperform-nvidia-in-ai-chip","json":"https://digestai.news/story/wall-street-analysts-predict-broadcom-may-outperform-nvidia-in-ai-chip.json","markdown":"https://digestai.news/story/wall-street-analysts-predict-broadcom-may-outperform-nvidia-in-ai-chip.md","slug":"wall-street-analysts-predict-broadcom-may-outperform-nvidia-in-ai-chip","headline":"Wall Street analysts predict Broadcom may outperform Nvidia in AI chip growth","summary":"Analysts at 24/7 Wall St. rate Broadcom stock a *buy* with a $416 price target, citing a 22% potential upside despite its 0.77% year-to-date gain. The company’s AI semiconductor revenue jumped 221% to $17 billion in the latest quarter, outpacing Nvidia’s slower growth guidance. Broadcom’s fiscal 2027 AI revenue is expected to nearly double to $115 billion, driven by custom AI accelerators (XPUs) for clients like Google, Anthropic, OpenAI, and Meta. The stock has underperformed this year despite strong earnings, with EPS beating estimates at $3.32 and AI revenue guidance at $21.7 billion for Q4.\n\nBroadcom’s growth is backed by a $63 billion financing deal for AI compute capacity, announced by Bank of America, Blackstone, Citi, and Morgan Stanley. The company projects AI revenue of $230 billion in fiscal 2028 and EPS above $30. Anthropic’s planned deployment of 5 gigawatts of Broadcom’s TPU v8i in 2027 and potential expansion to 10 gigawatts in 2028 further supports its long-term outlook. However, Broadcom missed inclusion in the firm’s *Top 10 Stocks to Buy Now* list, suggesting mixed investor sentiment despite its technical fundamentals.","keyPoints":["Broadcom’s AI chip revenue surged 221% to $17 billion, outpacing Nvidia’s slower growth guidance","Analysts predict 22% upside with a $416 price target, despite Broadcom’s 0.77% year-to-date gain","Broadcom expects $115B AI revenue in 2027 and $230B in 2028, backed by $63B financing deal"],"whyItMatters":"Broadcom’s dominance in AI accelerators and its projected revenue growth could shift market attention from Nvidia, offering investors an alternative in the AI hardware race. Its financial backing and client contracts signal strong demand for custom AI chips.","category":{"slug":"hardware","name":"Hardware & Compute","url":"https://digestai.news/category/hardware"},"entities":{"companies":["Broadcom","Nvidia","Google","Anthropic","OpenAI","Meta"],"models":[],"people":[]},"firstPublishedAt":"2026-10-29T05:30:00Z","updatedAt":"2026-10-29T05:30:00Z","sourceCount":1,"hasPrimarySource":false,"sources":[{"outlet":"finance.yahoo.com","title":"Prediction: Wall Street’s Next AI Favorite May Not Be Nvidia","url":"https://finance.yahoo.com/markets/stocks/articles/prediction-wall-street-next-ai-170313056.html","publishedAt":"2026-10-29T05:30:00Z","type":"press","primary":false,"lead":true}],"sourceNotes":null,"discussions":[],"thread":{"title":"AI Chip Battle Nvidia Broadcom","url":"https://digestai.news/thread/nvidia-ai-revenue-grew-117-broadcom-grew-221-last-quarter","storyCount":2},"cite":{"text":"Digest AI, \"Wall Street analysts predict Broadcom may outperform Nvidia in AI chip growth\", 29 October 2026, https://digestai.news/story/wall-street-analysts-predict-broadcom-may-outperform-nvidia-in-ai-chip","publisher":"Digest AI","title":"Wall Street analysts predict Broadcom may outperform Nvidia in AI chip growth","datePublished":"2026-10-29T05:30:00Z","url":"https://digestai.news/story/wall-street-analysts-predict-broadcom-may-outperform-nvidia-in-ai-chip"},"generatedBy":"Written by Digest AI's editorial model from the linked sources; the sources are the record.","license":"Headlines, digests and key points are written by Digest AI and may be quoted with a link to the story page. Linked articles belong to their publishers. Terms: https://digestai.news/terms#reuse"}