Nvidia stock falls into correction, Broadcom sinks despite ‘Nvidia moment’

nvidia (NVDA(Arrow in correction zone, rival chip maker Broadcom)Afgo) The late-year consolidation took a hit Tuesday morning.

Nvidia shares fell 2.9% on Tuesday, trading at $128.17, after falling in a correction at the market close the previous day. A correction typically refers to a stock price falling 10% or more from the all-time high closing price. Nvidia stock rose to an all-time high of $148.87 in early November.

Rival semiconductor maker Broadcom ended its hot streak after closing higher by more than 11% on Monday and ending the day at $250. Broadcom stock fell more than 5% in morning trading Tuesday, to $326.54 a share.

So far this month, Broadcom shares are up nearly 50%, putting the stock on track to have its best month ever and add hundreds of billions to its market value. Broadcom now has a market cap of $1.17 trillion.

Nvidia stock is still up more than 170% year to date. Broadcom shares rose 130% in the same period.

As Nvidia sinks and Broadcom rises, the latter chipmaker is finally having its own ‘Nvidia moment,’ says Bernstein analyst Stacy Rasgon. books In a Monday note reported by MarketWatch (NWSA). “The company’s strong AI story finds its own ‘Nvidia moment’ with sharp new product potential in (the second half of) 2025, and forecasts for material opportunities…a few years later,” Rasgon said.

Despite a “fairly poor” core business outside of AI, Broadcom has reported promising results Fourth quarter earnings Last week that beat Wall Street estimates and provided upbeat guidance for next year.

In the last fiscal year, Broadcom generated a record $30.1 billion in semiconductor revenue, driven by artificial intelligence revenue of $12.2 billion, the company said. AI revenue alone grew 220% year over year, fueled by the company’s AI XPUs and Ethernet networks.

Broadcom expects first-quarter revenue of approximately $14.6 billion, with EBITDA (earnings before interest, taxes, depreciation and amortization) of 66% of expected revenue over the three months. In a call with analysts, the company’s leadership said it sees the opportunity “over the next three years in the field of artificial intelligence as enormous.”

To get the latest news, Facebook, twitter and Instagram.