Home / Business and Economy / Broadcom Stock Surges Past Nvidia in AI Race
Broadcom Stock Surges Past Nvidia in AI Race
26 Nov
Summary
- Broadcom's stock has climbed nearly 70% this year, outpacing Nvidia.
- Alphabet's recent stock surge has significantly benefited Broadcom.
- Analysts maintain 'outperform' ratings for Broadcom, seeing undervalued potential.
Broadcom's stock is experiencing a remarkable surge, with gains approaching 70% year-to-date, positioning it as a top performer in the S&P 500 and surpassing Nvidia's growth. This impressive performance is closely linked to the recent upward trajectory of Alphabet's stock, which has benefited from positive developments including investor confidence and strong AI model reception.
The rally in Alphabet's shares has provided a significant tailwind for Broadcom, a crucial partner for Google in supplying custom AI chips. While some AI favorites have seen their momentum slow, Broadcom's ascent highlights a potential shift in the competitive landscape for AI chip providers.
Analysts express strong confidence in Broadcom's prospects, with Bernstein reiterating an 'outperform' rating and a $400 target. The firm views Broadcom as a clear beneficiary of potential chip deals, citing its position with both Meta and Google. Despite a rising stock price, the analysts believe current market estimates are too low.
