Nvidia ( NVDA ) stock is in correction territory and rival chipmaker Broadcom’s ( AVGO ) late-year boost took a hit Tuesday morning.
Shares of Nvidia fell 2.9% to $128.17 on Tuesday, following a correction at market close the day before. A correction generally refers to the moment when a stock falls 10% or more from its all-time high closing price. Nvidia shares rose to a record high of $148.87 in early November.
Competing semiconductor maker Broadcom ended its hot streak after rising more than 11% on Monday, ending the day at $250 apiece. Broadcom stock fell more than 5% to $326.54 per share in Tuesday morning trading.
So far this month, Broadcom shares are up about 50%, putting the stock on track to have its best month ever and add 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% this year. Shares of Broadcom are up 130% over the same period.
As Nvidia sinks and Broadcom rises, 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 rollout [the second half of] 2025, and prospects for material opportunities… in a few years,” Rasgon said.
Despite a “fairly poor” core business outside of artificial intelligence, Broadcom last week posted promising fourth-quarter earnings that beat Wall Street estimates and provided an optimistic guidance for the year ahead.
Last fiscal year, Broadcom generated a record $30.1 billion in semiconductor revenue, driven by AI revenue of $12.2 billion, the company said. AI revenues alone rose 220% year-over-year, driven by the company’s AI XPUs and Ethernet networking portfolio.
Broadcom expects first quarter revenue of approximately $14.6 billion, with EBITDA (earnings before interest, taxes, depreciation and amortization) of 66% of expected three-month revenue. In a call with analysts, the company’s leadership said it sees the opportunity “over the next three years in AI to be enormous.”
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