Nvidia (NVDA) stock is in correction territory and rival chipmaker Broadcom’s (AVGO) year-end momentum took a hit Tuesday morning.
Nvidia shares fell 2.9% on Tuesday, trading at $128.17, after falling into a correction at the market close the previous day. A correction generally refers to when a stock falls 10% or more from an all-time high closing price. Nvidia shares rose to an all-time high of $148.87 in early November.
Competing semiconductor maker Broadcom ended its hot streak after closing up more than 11% on Monday and ending the day at $250. Broadcom shares fell more than 5% in Tuesday morning trading, to $326.54 per share.
So far this month, Broadcom shares are up about 50%, putting it on track to have its best month ever and add hundreds of billions to its market capitalization. Broadcom now has a market capitalization of $1.17 trillion.
Nvidia shares are still up more than 170% so far this year. Broadcom shares 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 wrote in a Monday note reported by MarketWatch (NWSA). The company’s “strong AI story is finding its own ‘Nvidia moment’ with a likely strong arrival of new products.” [the second half of] 2025, and prospects for material opportunities… within a few years,” Rasgon said.
Despite a “pretty bad” core business outside of artificial intelligence, Broadcom last week posted promising fourth-quarter earnings that beat Wall Street estimates and provided 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 revenue alone grew 220% annually, driven by the company’s AI XPU and Ethernet networking portfolio.
Broadcom expects first-quarter revenue of approximately $14.6 billion, with EBITDA (earnings before interest, taxes, depreciation and amortization) at 66% of projected revenue for the three months. In a call with analysts, the company’s leadership said it sees the opportunity “over the next three years in AI as enormous.”
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