Nvidia stock slumps into a correction — and Broadcom sinks despite its ‘Nvidia moment’
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Nvidia (NVDA-2.83%) stock is in correction territory, and rival chipmaker Broadcom’s (AVGO-5.08%) late-year boost took a hit Tuesday morning.
Shares of Nvidia fell 2.9% Tuesday trading at $128.17, after slumping into a correction by market close the day before. A correction typically refers to when a stock falls 10% or more from an all-time high closing price. Nvidia stock rallied to an all-time high of $148.87 in early November.
Competing semiconductor manufacturer Broadcom ended its hot streak after closing up more than 11% Monday and ending the day at $250 apiece. Broadcom stock fell more than 5% in Tuesday morning trading, to $326.54 per share.
So far this month, shares of Broadcom are up roughly 50%, putting the stock on track to have its best month ever and adding hundreds of billions to its market capitalization. Broadcom now has a market capitalization of $1.17 trillion.
Nvidia stock is still up more than 170% year-to-date. Broadcom shares have climbed 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 wrote in a Monday note reported by MarketWatch (NWSA-0.52%). The company’s “robust AI story is finding its own ‘Nvidia moment’ with a likely sharp new product ramp into [the second half of] 2025, and outlook for material opportunity … a few years out,” Rasgon said.
Despite a “fairly lousy” core business outside of artificial intelligence, Broadcom posted promising fourth-quarter earnings last week that beat Wall Street estimates and provided upbeat guidance for the year to come.
This past fiscal year, Broadcom generated a record $30.1 billion in semiconductor revenue, driven by AI revenue of $12.2 billion, the company said. AI revenue alone grew 220% on an annual basis, fueled by the company’s AI XPUs and Ethernet networking portfolio.
Broadcom is expecting first quarter revenue of approximately $14.6 billion, with EBITDA (earnings before interest, taxes, depreciation, and amortization) of 66% of projected revenue over the three months. In a call with analysts, company leadership said it sees the opportunity “over the next three years in AI as massive.”
