{"id":8781,"date":"2025-09-09T00:39:08","date_gmt":"2025-09-09T00:39:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/8781\/"},"modified":"2025-09-09T00:39:08","modified_gmt":"2025-09-09T00:39:08","slug":"why-analysts-call-broadcom-a-magnificent-eight-stock-that-can-challenge-nvidia-2","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/8781\/","title":{"rendered":"Why Analysts Call Broadcom a ‘Magnificent Eight’ Stock That Can Challenge Nvidia"},"content":{"rendered":"

Strong quarterly results<\/a> from Broadcom could signal strong competition for AI heavyweight Nvidia.\n<\/p>\n

Broadcom (AVGO<\/a>) last week reported record quarterly sales<\/a> that showed strong demand for its AI offerings and introduced a big new mystery customer reports suggested could be ChatGPT maker OpenAI<\/a>. Citi analysts said the results and growing commitments from buyers\u2014many which are also Nvidia (NVDA<\/a>) customers\u2014could suggest an estimated $12 billion hit to Nvidia\u2019s 2026 sales.\u00a0\n<\/p>\n

Citi analysts on Monday maintained a \u201cbuy\u201d rating on Nvidia stock but trimmed their target price to $200 from $210, citing concerns about threats to Nvidia’s dominance after Broadcom (AVGO<\/a>) said last week it expects demand from major Big Tech clients to shift in favor of its custom AI chips, potentially setting it up to win more market share.\n<\/p>\n

Broadcom\u2019s stock climbed more than 3% to close Monday around $346, adding to a nearly 10% jump Friday after its better-than-expected earnings. Nvidia shares ticked less than 1% higher to end today around $168 after taking a 3% hit in Friday\u2019s session.\u00a0(Read Investopedia’s full coverage of today’s trading here<\/a>.)\n<\/p>\n

\u201cPeople freaked out a bit after Broadcom earnings,\u201d Melius Research analysts led by Ben Reitzes told clients Monday.\u00a0 They see Broadcom as a \u201cMagnificent 8\u201d stock\u2014worthy of joining the group of seven tech heavyweights\u2014with significant room to rise.\n<\/p>\n

\u201cTo be clear, we have always taken a view that Nvidia’s share of AI compute would actually fall over time as chip designers like Broadcom would gain about 30% of share and a gang of other merchants led by AMD would take at least 10%,\u201d they said.\n<\/p>\n

Melius Says Broadcom, Nvidia Can Go ‘A Heck of a Lot Higher’ <\/p>\n

Melius analysts, who reiterated “buy” ratings and bullish targets of $240 for Nvidia and $415 for Broadcom, said they believe both chipmakers are likely to be winners of the rapidly growing AI computing and networking market.\n<\/p>\n

Nvidia’s potential to build an Apple-like (AAPL<\/a>) “ecosystem” with developers loyal to its programmable architecture may also be underestimated, they suggested, drawing parallels to the iPhone maker’s ability to sustain long-term gains<\/a> even as its share of the market for smartphones declined.\n<\/p>\n

If Broadcom were able to capture even 20% of an estimated $2 trillion addressable market for 2030 while Nvidia holds onto a 40% share\u2014down from over 70% currently\u2014both stocks “are going a heck of a lot higher,” Melius said.\u00a0They see both stocks more than doubling in value the next three years.<\/p>\n","protected":false},"excerpt":{"rendered":"Strong quarterly results from Broadcom could signal strong competition for AI heavyweight Nvidia. Broadcom (AVGO) last week reported…\n","protected":false},"author":2,"featured_media":8782,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[220,218,219,61,60,80],"class_list":["post-8781","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-ie","tag-ireland","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/8781","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=8781"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/8781\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/8782"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=8781"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=8781"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=8781"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}