Nvidia shares plummeted on Tuesday, following Broadcom’s decline after an initial rise. Despite the fall, Nvidia remains up over 160% for the year, while Broadcom has surged more than 120%. Nvidia crossed into correction territory last Monday, falling 10% or more from its all-time high close of $148.88.
Broadcom shares rallied in the past five days, largely driven by the company’s strong earnings release and revenue outlook beating forecasts. The stock has risen over 120% this year, with several Wall Street analysts increasing their price targets.
The divergence between Nvidia and Broadcom can be attributed to their respective strengths: Nvidia’s graphics processing units are in high demand for AI model training, while Broadcom specializes in custom AI chips for large cloud computing companies. CEO Hock Tan sees an opportunity in AI, stating that “massive specific hyperscalers have begun their respective journeys to develop their own custom AI accelerators.”
Source: https://www.cnbc.com/2024/12/17/nvidia-falls-deeper-into-correction-territory-as-broadcom-rally-continues.html