What Nvidia’s Earnings Could Mean for Broadcom and Other Chipmakers

As one of the primary beneficiaries of the AI boom, chipmaker Nvidia’s (NVDA) stock has become a bellwether for industry, with its quarterly results last week offering some clues about what to expect from Broadcom (AVGO) later this week, and other chipmakers. 

Nvidia’s earnings, which came in just ahead of Wall Street’s estimates, largely received a bullish reception from analysts, who voiced confidence in demand for its AI hardware, though worries about China sales and geopolitical issues have weighed on the stock.

Shares of Nvidia dropped nearly 3% in recent trading, and Broadcom shares slipped 1%, with other chip stocks extending last week’s declines as uncertainty about tariffs and America’s relations with major trading partners weighed on the major indexes. A diplomatic summit in Tianjin over the weekend with leaders from more than 20 non-Western countries, including Chinese President Xi Jinping, Indian Prime Minister Narendra Modi, and Russian President Vladimir Putin, sought to showcase China’s leadership amid trade tensions with the U.S.

AI chipmaker Broadcom, which Oppenheimer analysts have called the “No. 2 AI franchise” after Nvidia, is set to report its fiscal third-quarter results after the bell on Thursday, and could face some similar challenges related to its large exposure to China—as well as benefit from AI tailwinds. 

Sales to China Account for Fifth of Broadcom’s Revenue

Like Nvidia, Broadcom derives a significant chunk of its sales from China, with the country accounting for roughly a fifth of Broadcom’s revenue in its fiscal 2024, though that’s declined from almost a third in 2023.

Broadcom also claims some of the same Big Tech AI clients Nvidia does, including Meta Platforms (META) and Google parent Alphabet (GOOGL), with their commitments to hefty AI spending expected to benefit the chipmaker. Citi analysts suggested last week Broadcom could also have plans with ChatGPT maker OpenAI, Elon Musk’s xAI, and Apple (AAPL) in its pipeline.

The Citi analysts have a “buy” rating and $315 price target for the stock, which finished Friday’s session around $297. Despite recent losses, it has added more than one-quarter of its value since the start of the year. Oppenheimer expects Broadcom could have even further to climb, with a $325 target, still well below a Street high of $350, according to Visible Alpha.

Heading into the results, Wall Street analysts are overwhelmingly bullish on Broadcom’s stock, anticipating rising sales and profits. All of the 10 analysts with current ratings compiled by Visible Alpha give it a “buy” or equivalent rating.

CORRECTION—Sept. 2, 2025: This article has been corrected to reflect the U.S. was not represented at the summit in Tianjin and President Trump did not attend.