Broadcom Shares Slide 1.40% as Analysts See Gains from Nvidia's Leadership Hurdles
Broadcom shares fell 1.40% to $359.25 as market experts point to potential gains for competitors amid Nvidia's ongoing leadership challenges.
📈MarketsPhoto: Benzinga
Key points
- Broadcom shares dropped 1.40% to $359.25.
- Analysts expect Q4 earnings of $3.81 per share and $34.89 billion in revenue on December 9.
- Cloud providers are accelerating custom AI chip development to reduce reliance on Nvidia.
Broadcom Inc. shares dropped 1.40% to trade at $359.25 as Wall Street analysts weigh the company's prospects of capturing market share from Nvidia Corp. Amid leadership turmoil and mounting competition, major cloud operators are increasingly accelerating efforts to reduce their dependence on Nvidia processors by pursuing custom AI chips.
According to Seaport Research analyst Jay Goldberg, Broadcom is exceptionally well-positioned to help major cloud platforms design proprietary hardware. Speaking to CNBC, Goldberg noted that Broadcom and Advanced Micro Devices Inc. were already expanding their footprint prior to Nvidia's current difficulties, and that industry uncertainty will likely hasten the diversification of chip suppliers.
Prime Capital Financial Chief Investment Officer Will McGough echoed these sentiments, telling CNBC that competitors are stepping in to fill gaps while Nvidia navigates its leadership transition. McGough highlighted that custom silicon developments by major tech firms like Alphabet and Amazon, alongside narrowing software advantages for Nvidia, could prompt investors to reevaluate the broader semiconductor landscape ahead of Broadcom's December 9 earnings report.
- Broadcom shares dipped 1.40% to $359.25 during the session.
- Analysts project December 9 earnings of $3.81 per share on revenue of $34.89 billion.
- Wall Street maintains a consensus Buy rating on the stock with an average price target of $522.92.
Source Benzinga — benzinga.com/markets/tech/26/11/63234374/broadcom-is-very-very-capa… ↗
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