Nvidia Is Near Its High While Its Biggest Chip Peers Sit 18% to 32% Below Theirs. These Are the Chip Stocks to Buy.
Nvidia (NVDA) is near its 52-week high, while peers AMD (AMD), Micron (MU), Broadcom (AVGO), and Marvell (MRVL) trade 18% to 32% below theirs. Nvidia reported $96.2B revenue in Q2 2027, up 106% YoY, with data center revenue at $89B. Broadcom and Marvell raised outlooks, with Broadcom targeting $230B AI revenue by 2028. AMD and Micron also showed strong growth but trade at higher multiples.
How this was made
The 30-second read
Why it matters
Fresh earnings numbers and forward guidance for five major AI chip makers provide new data for valuation models.
Market read
The fresh earnings and guidance for the top AI chip makers are material for traders focusing on the semiconductor sector.
What to watch
Potential supply‑chain constraints and memory price volatility could curb growth.
Background
The article compares AI‑chip peers' price discounts relative to their 52‑week highs and discusses recent earnings and guidance.
Ticker impact
Nvidia reported FY2027 Q2 revenue of $96.2B (+106% YoY) and guided FY2028 revenue growth of ~70%, providing fresh earnings and guidance data.
potential upside if guidance is met
Guidance exceeds consensus and reflects continued AI demand.
AMD posted Q2 2026 revenue of $11.5B (+50% YoY) and data‑center revenue of $6.7B, with guidance implying 31x forward earnings.
limited upside unless margin improves
Revenue beat is strong, but valuation remains premium.
Micron reported FY2026 Q3 revenue of $41.5B (+400% YoY) and forecast FY2026 Q4 revenue of ~$50B with 86% gross margin.
possible price rally on earnings beat
Guidance indicates continued demand despite cyclical concerns.
Broadcom reported FY2026 Q3 AI semiconductor revenue of $16.7B (+221% YoY) and aims to double AI revenue to $115B next fiscal year.
upside potential if targets are credible
Guidance reflects strong AI market positioning.
Marvell posted FY2027 Q2 revenue of $2.7B (+37% YoY) and raised outlook for FY2027/2028, though shares fell 10% on margin concerns.
short‑term downside risk, medium‑term upside
Guidance is positive but margin compression tempers enthusiasm.
Market effects
AI‑related chip demand lifts the broader semiconductor sector.
U.S. tech stocks likely benefit; global AI supply chain sees renewed interest.
High, given the scale of AI spending forecasts.
Counterpoint
Valuations remain stretched; margin pressure at Marvell could signal broader profit‑margin compression.
Key entities
- CompanyNvidia
AI chip leader reporting FY2027 Q2 results and FY2028 guidance.
- CompanyBroadcom
AI semiconductor revenue surge and aggressive future targets.
- CompanyMarvell Technology
Record revenue and raised outlook despite margin concerns.
- CompanyAdvanced Micro Devices
Strong Q2 2026 results with high valuation.
- CompanyMicron Technology
Massive revenue growth and high margin forecast.
