Can Broadcom’s Earnings Push Nvidia Higher? Wall Street Thinks So

Nvidia’s stock (NVDA) inched up Thursday morning — but the reason might surprise you. It’s not because of anything Nvidia did directly. Instead, investors are watching what Broadcom (AVGO) reports later today.

That’s because Broadcom, another major chip company, is about to drop its quarterly earnings. If those numbers come in strong — especially in areas tied to AI chips — it could suggest that overall demand for AI hardware is growing. And when demand grows across the entire market, even competitors can benefit.

What Do Broadcom’s Results Have to Do with Nvidia?

Here’s the logic: Both Nvidia and Broadcom sell semiconductors, including chips used for artificial intelligence (AI). If Broadcom reports higher-than-expected earnings and revenue, it tells investors that customers — including big tech firms and data centers — are spending more on AI hardware.

In investing, this is called a read-through effect. It means that even though the data comes from one company, it gives us clues about the health of the entire sector.

So if Broadcom shows the AI chip market is hot, investors assume Nvidia’s business is also doing well — or will be soon.

Why This Matters for Nvidia’s Stock

Stock prices aren’t just based on what a company has done, but also what people expect it will do next. If AI demand is rising, Nvidia could sell more chips, book more revenue, and post bigger profits. That drives higher stock prices, since people want to buy in before the growth shows up in Nvidia’s next earnings report.

That’s why even a 0.3% move in Nvidia’s stock before Broadcom’s numbers drop can matter — it shows investors are positioning early.

In a lighter moment, Nvidia CEO Jensen Huang made a cameo this week on Nintendo’s YouTube series to promote the company’s custom processor in the Switch 2 console, which just launched. It’s a reminder that Nvidia isn’t just about AI — it’s still very much in the gaming world too.

Is Nvidia a Buy, Sell, or Hold?

Even with shares hovering near record levels, analysts aren’t backing off. Wall Street is still overwhelmingly bullish on Nvidia, with 36 analysts rating it a Buy, only four sitting on the fence, and just one calling it a Sell. The average NVDA stock price target is $173.57 — suggesting the stock could climb another 22.3% over the next year.

See more NVDA analyst ratings