Three major AI chip makers have pulled back this week despite strong earnings.
NVIDIA, Broadcom, and AMD each beat recent estimates and guided robust growth.
The dip offers entry points before their next earnings reports set the tone into fall.
What happened
NVIDIA, Broadcom, and AMD have all retreated over the past week despite strong recent earnings and guidance. NVIDIA closed Thursday at $214.72 (down 4.64% weekly but up 15.27% year to date); Broadcom at $368.45 (down 7.15% monthly, up 28.16% annually); AMD at $473.25 (down 14.32% monthly but up 120.98% year to date). All three beat consensus estimates in their most recent quarters and guided robust growth ahead.
Why it matters
Each company is a major player in the AI infrastructure stack—NVIDIA on GPUs, Broadcom on custom XPUs and networking, AMD as the second-ranked GPU platform—and their pullbacks come just before key earnings catalysts (NVIDIA's fiscal Q2 report and Broadcom's fiscal Q3 report). Demand remains strong: NVIDIA's CEO stated demand for AI has "gone parabolic," Broadcom's CEO said demand for XPUs and networking is "simply insatiable," and AMD expects its data center segment to more than double year-over-year in 2027.
What to watch
NVIDIA guided Q2 revenue to $91.0 billion (plus or minus 2%) with 75.0% non-GAAP gross margin and authorized $80.0 billion in additional buybacks; Broadcom guided Q3 consolidated revenue to $29.4 billion (up 84% year on year) with AI semiconductor revenue of $16 billion (up over 200%); AMD guided Q3 revenue to approximately $13 billion (plus or minus $300 million), representing about 41% year-over-year growth.
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The three semiconductor stocks have experienced a synchronized pullback despite fundamentally strong signals. Each company's most recent quarter beat consensus estimates, and their forward guidance points to sustained demand driven by AI infrastructure buildout. NVIDIA's Data Center revenue reached $75.246 billion (up 92%), with networking nearly tripling to $14.8 billion. Broadcom's AI semiconductor revenue hit $10.80 billion (up 143%) and the company guided AI semiconductor revenue to $16 billion in Q3 (up over 200%), with AI bookings in Q2 exceeding $30 billion. AMD's Data Center revenue more than doubled at $6.718 billion (up 107%), now representing 58% of company revenue, and management raised full-year expectations for 2027.
The article frames the summer dip as a reset opportunity for investors ahead of the earnings catalysts. CEO commentary reinforces underlying strength: Jensen Huang attributed demand surge to the arrival of "Agentic AI," while Broadcom's Hock Tan emphasized that demand for XPUs and networking is "simply insatiable." AMD's partnership with Anthropic to deploy up to two gigawatts of MI450 series GPUs beginning in the first half of 2027 provides concrete visibility into customer adoption. The pullback appears technical rather than fundamental—a reduction in frothy valuations before investors reassess growth trajectories in the coming weeks.
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