Nvidia (NVDA) stock is in correction territory as rival chipmaker Broadcom (AVGO) enjoys a late-year boost.
Shares of Nvidia fell 1.7% in pre-market trading Tuesday, after slumping into a correction by market close the day before,ending the day at $132. A correction typically refers to when a stock falls 10% or more from an all-time high closing price. Nvidia stock rallied to an all-time high of $148.87 in early November.
Meanwhile, competing semiconductor manufacturer Broadcom is on a hot streak. Shares surged Monday, closing up more than 11% and ending the day at $250 apiece. Broadcom stock continued to rally early Tuesday, popping up 1% in pre-market trading.
So far this month, shares of Broadcom are up roughly 50%, putting the stock on track to have its best month ever and adding hundreds of billions to its market capitalization. Broadcom now has a market capitalization of $1.17 trillion.
Nvidia stock is still up 174% year-to-date. Broadcom shares have climbed 130% in the same period.
As Nvidia sinks and Broadcom soars, the latter chipmaker is finally having its own “Nvidia moment,” Bernstein analyst Stacy Rasgon wrote in a Monday note reported by MarketWatch (NWSA). The company’s “robust AI story is finding its own ‘Nvidia moment’ with a likely sharp new product ramp into [the second half of] 2025, and outlook for material opportunity … a few years out,” Rasgon said.
Despite a “fairly lousy” core business outside of artificial intelligence, Broadcom posted promising fourth-quarter earnings last week that beat Wall Street estimates and provided upbeat guidance for the year to come.
This past fiscal year, Broadcom generated a record $30.1 billion in semiconductor revenue, driven by AI revenue of $12.2 billion, the company said. AI revenue alone grew 220% on an annual basis, fueled by the company’s AI XPUs and Ethernet networking portfolio.
Broadcom is expecting first quarter revenue of approximately $14.6 billion, with EBITDA (earnings before interest, taxes, depreciation, and amortization) of 66% of projected revenue over the three months. In a call with analysts, company leadership said it sees the opportunity “over the next three years in AI as massive.”
