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Nvidia (NVDA) shares are in correction territory, and rival chipmaker Broadcom (AVGO) year-end push took a hit Tuesday morning.
Shares of Nvidia fell 2.9% on Tuesday to trade at $128.17, after falling in a correction by the market close the previous day. A correction typically refers to when a stock falls 10% or more from an all-time high closing price. Nvidia shares rose to an all-time high of $148.87 in early November.
Rival semiconductor maker Broadcom ended its hot streak after closing up more than 11% on Monday and ending the day at $250. Broadcom shares fell more than 5% in early morning trading on Tuesday, to $326.54 a share.
Broadcom shares are up roughly 50% so far this month, putting the stock on track for its best month yet and adding hundreds of billions to its market cap. Broadcom now has a market cap of $1.17 trillion.
Nvidia shares are still up more than 170% year-to-date. Broadcom shares are up 130% over the same period.
As Nvidia slumps and Broadcom soars, the latter chipmaker is finally having its own “Nvidia moment,” Bernstein analyst Stacy Rasgon said. he wrote in a Monday note reported by MarketWatch (NWSA). “The company’s robust AI story is finding its own ‘Nvidia moment’ with a possible sharp new product in the second half of 2025 and the prospect of material opportunities … several years from now” , Rasgon said.
Despite a “pretty bad” core business outside of AI, Broadcom posted promising fourth quarter earnings last week beat Wall Street estimates and provided upbeat guidance for next year.
Last fiscal year, Broadcom generated record semiconductor revenue of $30.1 billion, driven by AI revenue of $12.2 billion, the company said. AI revenue alone grew 220% year-over-year, driven by the company’s AI Ethernet and XPU portfolio.
Broadcom expects first-quarter revenue of roughly $14.6 billion, with EBITDA (earnings before interest, taxes, depreciation and amortization) at 66% of forecast revenue for the three months. In a call with analysts, the company’s management said it sees the opportunity “over the next three years in AI as massive.”
