Nvidia (NVDA) stock is in correction territory, and rival chipmaker Broadcom’s (AVGO) year-end stock rally took a hit Tuesday morning.
Nvidia stock fell 2.9% to $128.17 in Tuesday trading, after falling into a correction by the market close the previous day. A correction typically occurs when a stock’s price falls by more than 10% from its all-time high closing price. Nvidia stock rose to an all-time high of $148.87 in early November.
Rival chipmaker Broadcom Inc. ended its strong winning streak on Monday, jumping more than 11% to close at $250 a piece. Broadcom stock fell more than 5% in Tuesday morning trading to $326.54 per share.
So far this month, Broadcom’s stock has risen about 50%, putting the stock on track for its best month ever and adding hundreds of billions of dollars to its market capitalization. Broadcom’s market capitalization currently stands at $1.17 trillion.
Nvidia stock is still up more than 170% since the beginning of the year. Broadcom stock rose 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 said in a Monday note reported by MarketWatch (NWSA). said. The company’s “robust AI story, with significant new product launches expected into the second half of 2025, and potentially significant opportunities in the years ahead, has seen us find our own ‘NVIDIA moment.’ Rasgon said.
Despite its core business outside of artificial intelligence being “pretty abysmal,” Broadcom last week reported encouraging fourth-quarter profits that beat Wall Street expectations and offered a positive outlook for the year ahead.
Broadcom generated a record $30.1 billion in semiconductor sales last fiscal year, driven by $12.2 billion in AI sales, the company said. AI revenue alone grew 220% on an annual basis, driven by the company’s AI XPU and Ethernet networking portfolios.
Broadcom expects first-quarter sales of about $14.6 billion and EBITDA (earnings before interest, taxes, depreciation, and amortization) of 66% of its three-month sales forecast. In a conference call with analysts, company executives said they see “significant opportunities in the AI space over the next three years.”
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