Nvidia falls into deeper correction territory, Broadcom reverses early gains, moves lower


A tale of two chip stocks: Broadcom and Nvidia

NVIDIA Shares were down more than 2% on Tuesday morning, Broadcom Shares reversed earlier gains and were also lower.

Monday, NVIDIA Enter the correction area — Broadly defined as the point at which a stock falls 10% or more from its all-time high closing price.

Nvidia hit a closing high of $148.88 last month.

Broadcom shares fell more than 4% after initial gains in premarket trading.

Still, the two names have had very different moves over the past five days, with Broadcom shares up 40% and Nvidia shares down 5%.

Broadcom released last week Fiscal fourth quarter earnings That beat expectations, as did the revenue outlook for the quarter. Many Wall Street brokers, including Goldman Sachs, have Price target raised Recently in Broadcom stock.

Jacques Silva | Noor Photos | Getty Images

Broadcom shares have risen more than 120% so far this year, while Nvidia shares have risen more than 160% during the same period.

Nvidia’s graphics processing units (GPUs) have proven extremely popular as the chips of choice for training large artificial intelligence models, such as those developed by OpenAI.

Broadcom’s expertise is that the company is developing custom artificial intelligence chips for hyperscale enterprises, large cloud computing companies.

“We see opportunities in artificial intelligence over the next three years,” Broadcom CEO Hock Tan told investors on the company’s earnings call last week. “Specialized hyperscalers have begun their own journeys to develop their own Customized artificial intelligence accelerator.”



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