Nvidia Extends Losses, Broadcom Gives Up Early Gains
Key Highlights:
Nvidia’s stock continued to decline on Tuesday, while Broadcom reversed its earlier gains to trade lower.
Over the past five trading days, Broadcom surged 40%, whereas
Nvidia dipped by 5%.
Despite Nvidia’s pullback, its stock remains up more than 160% year-to-date, with Broadcom rising over 120% during the same period.
Nvidia shares fell more than 2% in Tuesday morning trading, deepening its correction after slipping more than 10% from its record-high closing price of $148.88 set last month. Broadcom initially rose in premarket trading but later dropped over 4% as the session progressed.
Over the past week, Broadcom and Nvidia have shown contrasting performance. Broadcom shares have surged on the back of strong quarterly results released last week. The chipmaker exceeded Wall Street’s earnings expectations and provided an upbeat revenue forecast for the current quarter, prompting analysts, including Goldman Sachs, to raise their price targets on the stock.
Broadcom CEO Hock Tan expressed optimism during the company’s earnings call, stating, “We see a significant opportunity in AI over the next three years as hyperscalers pursue their own custom AI accelerators.” Broadcom’s growth has been fueled by its focus on custom AI chips designed for hyperscalers—major cloud computing providers.
Meanwhile, Nvidia continues to dominate the market for AI-focused hardware, with its GPUs (graphics processing units) serving as the preferred choice for training massive artificial intelligence models, including those developed by OpenAI.
Despite recent declines, Nvidia remains a top performer for the year, up over 160%, while Broadcom has delivered a robust 120% gain year-to-date.
Key Highlights:
Nvidia’s stock continued to decline on Tuesday, while Broadcom reversed its earlier gains to trade lower.
Over the past five trading days, Broadcom surged 40%, whereas
Nvidia dipped by 5%.
Despite Nvidia’s pullback, its stock remains up more than 160% year-to-date, with Broadcom rising over 120% during the same period.
Nvidia shares fell more than 2% in Tuesday morning trading, deepening its correction after slipping more than 10% from its record-high closing price of $148.88 set last month. Broadcom initially rose in premarket trading but later dropped over 4% as the session progressed.
Over the past week, Broadcom and Nvidia have shown contrasting performance. Broadcom shares have surged on the back of strong quarterly results released last week. The chipmaker exceeded Wall Street’s earnings expectations and provided an upbeat revenue forecast for the current quarter, prompting analysts, including Goldman Sachs, to raise their price targets on the stock.
Broadcom CEO Hock Tan expressed optimism during the company’s earnings call, stating, “We see a significant opportunity in AI over the next three years as hyperscalers pursue their own custom AI accelerators.” Broadcom’s growth has been fueled by its focus on custom AI chips designed for hyperscalers—major cloud computing providers.
Meanwhile, Nvidia continues to dominate the market for AI-focused hardware, with its GPUs (graphics processing units) serving as the preferred choice for training massive artificial intelligence models, including those developed by OpenAI.
Despite recent declines, Nvidia remains a top performer for the year, up over 160%, while Broadcom has delivered a robust 120% gain year-to-date.