Broadcom Inc (AVGO US) and Nvidia Corp (NVDA US)
Can I please have you opinions on Broadcom and Nvidia. I don’t own either currently but would probably look to add one after the recent pullback. Merry Christmas to James and team.
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Answer
Hi Greg,
These two stocks are at the forefront of the “AI Trade” but unlike a number in the space they are already generating huge revenue and profits:
- Broadcom is forecast to deliver ~$US96bn of revenue in FY26 and Nvidia a whopping $US213bn.
The markets sold them both off ~22% on fears of overspending in AI not delivering adequate and/or fast enough returns as unbridled optimism has turned to caution. These are two quality companies but as the cost of Broadcom’s debt spirals we are cautious to chase them too aggressively at current levels.
- From a technical perspective we like Broadcom ~$US300 and Nvidia ~$US160, both more than 5% lower.
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Broadcom Inc (AVGO US) v Nvidia Inc (NVDA US)
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Broadcom Inc (AVGO US) v Nvidia Inc (NVDA US)
