AI Giants Nvidia, Broadcom, and Alphabet Report Strong Revenue Gains as Stocks Rally Again

The S&P 500 and Nasdaq Composite have reached all‑time highs, even as the Shiller P/E ratio sits near 40, signaling stretched valuations. Despite geopolitical tensions and inflation worries, AI‑related stocks have continued to outperform, buoyed by strong demand for chips and cloud services.

Nvidia (NVDA) reported $216 billion in revenue for fiscal 2026, a 65% year‑over‑year increase, with net income rising the same percentage to $120 billion. Its stock added 1.23% after the release, and its market capitalization stands at $4.9 trillion. Broadcom (AVGO) posted Q1 fiscal 2026 revenue above $19 billion, up 29% year‑over‑year, and net income grew 34% in the quarter. The shares gained 5.06%, reflecting confidence in its custom AI silicon and AI networking businesses. Alphabet (GOOGL/GOOG) said Google Cloud revenue climbed 36% in 2026, driven by AI workloads and the Gemini model. The stock rose 2.12% (GOOGL) and 2.22% (GOOG), keeping its market cap near $4.1 trillion.

Nvidia’s growth stems from its dominance in AI accelerators—chips that speed up machine‑learning tasks—where demand still exceeds supply, allowing it to maintain high margins despite its size. Broadcom’s strength lies in custom AI silicon and the networking gear that moves data between chips, a role often described as the "glue" of AI systems; the VMWare integration added recurring software revenue, smoothing earnings. Alphabet’s cloud gains show that enterprises are shifting spending to AI‑ready platforms, while its advertising business remains large but gradually sharing revenue with newer AI ventures like Waymo. Valuations remain mixed: Nvidia trades at a P/E of 41, Broadcom at a forward P/E of 36, and Alphabet at a P/E of 32, all below the market’s Shiller P/E of 40, suggesting room for further upside if AI spending continues.