Broadcom Falls After Nvidia Earnings, but Here’s Why Investors Should Still Buy

Nvidia (NASDAQ:NVDA | NVDA Price Prediction) delivered another blockbuster quarter, reporting fiscal fourth-quarter revenue and earnings that easily trounced Wall Street’s expectations as demand for its advanced artificial intelligence (AI) accelerators remains white hot. With enterprise and hyperscaler demand for AI infrastructure showing no signs of slowing, the chipmaker’s fundamentals remain rock-solid.

Yet Nvidia’s stock is tumbling 5% in morning trading today as AI fatigue, sky-high valuations potentially limiting further upside opportunity, and concerns about heavy customer concentration rippled across the sector. Broadcom (NASDAQ:AVGO) shares were down 6.5% in sympathy, even as the company made its own landmark announcement this morning.

Gloom Amid the Boom

Nvidia’s results are forcing investors to reassess the competitive landscape for every AI-chip supplier, including Broadcom. The message from the market appears to be:…