Broadcom and Nvidia have laid out aggressive AI revenue targets for 2027 that, if met, imply substantial upside from current valuations, according to projections shared during recent earnings calls. The two chipmakers have underperformed the broader market this year, but both say hyperscaler spending plans already in motion will drive a sharp acceleration next year.
Hyperscaler spending drives the outlook
Multiyear capital plans from the largest cloud operators are not public, but they are shared with key suppliers so production capacity can be aligned. Nvidia and Broadcom have each disclosed portions of that visibility, giving investors a rare glimpse into demand that has not yet been priced into shares.
The numbers each company put forward
Nvidia indicated on its second-quarter call that revenue could grow roughly 70% in 2027, fueled by hyperscaler outlays and the rollout of its next-generation Rubin architecture. Broadcom went further, saying AI semiconductor revenue is on track to double next year and then double once more in 2028.
Valuation gap versus 2026 performance
Nvidia shares have risen about 17% this year, ahead of the S&P 500’s 11% gain, but well below the triple-digit advances investors grew accustomed to. Broadcom has advanced less than 5%, lagging the index by a wide margin. Both stocks have seen their price-to-earnings multiples compress even as earnings have surged.
What the forward math suggests
Applying a conservative 30-times trailing earnings multiple to next year’s consensus estimates implies more than 50% upside for Broadcom and over 100% for Nvidia, assuming each hits its stated targets and the market re-rates toward that level. The calculation bakes in a margin of safety but still leaves a wide gap between current prices and the implied fair value.
What to watch
The bull case rests on hyperscalers executing the spending trajectories they have communicated privately, on Rubin launching on schedule, and on Broadcom converting its design wins into the projected revenue doubling. Any slippage in those plans would collapse the upside thesis quickly.