TLDR
- Broadcom and Microsoft are positioned for AI growth with custom chips and cloud services driving revenue increases
- Nvidia dominates AI semiconductor market with record-breaking revenue and new Blackwell GPU systems
- ASML maintains monopoly on advanced chip manufacturing equipment essential for AI processors
- AI infrastructure spending could reach $2-4 trillion globally by 2030 according to industry forecasts
- All four companies show strong financial performance with double-digit revenue and earnings growth
Four major technology companies are capturing substantial market share as artificial intelligence transforms business operations across industries. Recent financial results demonstrate how AI infrastructure investments are translating into revenue growth.
McKinsey & Company forecasts global data center infrastructure spending will exceed $1.7 trillion by 2030. This investment wave primarily targets AI technology advancement and high-performance computing capabilities. Goldman Sachs research estimates global AI cloud computing revenue could reach $2 trillion by 2030.
Broadcom Posts Record AI Revenue
Broadcom reported third-quarter revenue of $15.9 billion, up 22% year-over-year. The company’s AI revenue jumped 63% to $5.2 billion in the quarter. Management projects AI sales could reach $6.2 billion in the current quarter.
The semiconductor company makes custom application-specific integrated circuits for AI data centers. Major clients include Meta and Alphabet, who use Broadcom’s XPUs in their data center operations. Software sales from its VMware acquisition rose 17% to $6.7 billion, representing 43% of total revenue.
Management estimates that the company’s AI revenue could reach up to $90 billion annually by 2027. Non-GAAP earnings increased 36% to $1.69 per share during the third quarter.
Microsoft Azure Drives Cloud Growth
Microsoft’s fourth-quarter results showed 18% revenue growth to $76 billion. The company’s Azure cloud computing service surpassed $75 billion in annual revenue, growing 34%. CEO Satya Nadella said Microsoft continues to gain market share in AI infrastructure each quarter.
Microsoft currently holds 20% of the cloud computing market and continues taking share from Amazon. The company has integrated OpenAI’s ChatGPT technology across its software suite, including Microsoft 365 and GitHub. Non-GAAP earnings increased 24% to $3.65 per share.
Nvidia posted record financial results for its fiscal second quarter ended July 27. Revenue increased 56% year-over-year to $46.7 billion while net income surged 59% to $26.4 billion. The company’s new Blackwell Ultra GB300 systems generated tens of billions in revenue.
The GB300 systems feature NVLink 72 connection technology that enables complete server racks to function as single computers. These systems produce 10 times the output of previous Hopper architecture while using the same energy. Nvidia produces 1,000 GB300 racks weekly and expects to increase output in the third quarter.
Nvidia accelerated its hardware release schedule from every two years to annual updates. The company’s CUDA software platform creates switching costs for customers, as it only works directly with Nvidia hardware for AI training and deployment.
ASML reported second-quarter net sales of 7.7 billion euros with net income of 2.3 billion euros. The Dutch company maintains a monopoly on extreme ultraviolet lithography machines required for advanced AI chip production. Its order backlog reached 33 billion euros despite canceling 1.4 billion euros in Chinese orders.
The company expects customers to add 30% more EUV manufacturing capacity in 2025 compared to 2024. ASML’s new NXE:3800E system demonstrates higher productivity while its high-NA EUV technology prints smaller chip features in fewer production steps.
ASML expects full market availability of Nvidia’s GB300 systems before the end of calendar 2025, with major cloud providers easily transitioning from previous GB200 systems due to shared architecture and physical specifications.
