Broadcom’s AI Ascent: Can AVGO Dethrone Nvidia’s Crown?

xc__
09-09

$NVIDIA(NVDA)$ Broadcom ( $Broadcom(AVGO)$ ) soared 4.7% to $350.48 on Monday, marking a new record and extending a 10-out-of-11-session rally, with an 18% monthly surge. Nvidia (NVDA) edged up to $170, hinting at a recovery, as both stocks ride the AI wave. With the S&P 500 at 6,540, Nasdaq at 21,950, and Bitcoin at $123,456, the VIX at 14.12 reflects calm amid tariff tensions and oil at $74.50/barrel. Posts found on X cheer “AVGO’s Nvidia moment,” but some question “NVDA’s rebound.” This deep dive explores Broadcom’s rise, Nvidia’s trajectory, the AI rivalry, trading opportunities, and a plan to bet on the ascent or hedge the shift.

Broadcom’s Rise: AI Powerhouse Emerges

Broadcom’s momentum is undeniable:

  • Price Surge: Up 18% this month to $350.48, with support at $330 and resistance at $360, reflecting AI-driven demand.

  • Earnings Boost: Q3 revenue hit $15.96 billion (up 22% YoY), with AI chip sales at $5.2 billion (up 63%), and a new $10 billion OpenAI order fueling optimism.

  • Market Cap: $1.6 trillion, closing the gap with Nvidia’s $4.07 trillion, driven by custom XPU chips and VMware growth.

  • Strategic Edge: Partnerships with Google, Amazon, and OpenAI, plus 2nm node tech, position it as a fabless leader in AI semiconductors.

  • Sentiment Check: Posts found on X laud “AVGO’s AI edge,” though some note “Nvidia’s scale advantage.”

Broadcom’s ascent challenges the status quo.

Nvidia’s Trajectory: Decline Ending or Pause?

Nvidia’s path shows signs of stabilization:

  • Price Action: Up to $170, recovering from a 6% monthly dip, with support at $160 and resistance at $180.

  • Earnings Context: Q2 revenue $30.04 billion (up 56% YoY), but guidance miss sparked a sell-off, with data center growth slowing to 50% from 140%.

  • Market Cap: $4.07 trillion, still the AI chip king, but customer concentration (80% from top five) raises risks.

  • Technical View: RSI at 50 and MACD neutral suggest a consolidation phase, with potential for a 10% bounce to $187 if momentum returns.

  • Sentiment Check: Posts found on X debate “NVDA bottom” versus “AI bubble fears,” reflecting uncertainty.

Nvidia’s decline may be pausing, not ending.

AI Rivalry: Broadcom vs. Nvidia Showdown

The AI chip race intensifies:

  • Broadcom’s Play: Custom XPUs for cloud giants, with $6.2 billion Q4 AI revenue guidance, outpacing Nvidia’s $5.8 billion estimate, leveraging VMware’s $6.79 billion software boost.

  • Nvidia’s Dominance: GPU leader with 80% AI chip market share, but Blackwell Ultra ramp-up faces supply constraints, with 100% sovereign growth lagging.

  • Market Dynamics: Broadcom’s 46% AI revenue growth vs. Nvidia’s 50% suggests a narrowing gap, with Broadcom’s 70% networking sales growth adding fuel.

  • Analyst Views: Consensus targets $375 for AVGO (7% upside) and $190 for NVDA (12% upside), but some see AVGO hitting $400 if OpenAI scales.

  • Sentiment Check: X posts highlight “AVGO’s custom edge” versus “NVDA’s ecosystem lock,” fueling the rivalry narrative.

Broadcom’s gaining ground, but Nvidia holds the throne.

Trading Opportunities: Ride the Wave

The market offers clear shots:

  • Broadcom Breakout: Buy at $350, target $375, stop at $330. A 7% gain if resistance breaks.

  • Nvidia Rebound: Buy at $170, target $187, stop at $160. A 10% rise if momentum returns.

  • Semiconductor Play: Buy AMD at $151, target $165, stop at $145. A 9% win if sector lifts.

  • Hedge Move: Buy puts at $360 AVGO, target $330, stop at $370. A 8% gain if dips hit.

  • Options Kick: Buy $375 AVGO calls or $160 NVDA puts (September expiry) for 150-200% gains on a 5% move.

Opportunities span the AI duel.

Trading Strategies: Bet on Ascent or Hedge Shift

Short-Term Plays

  • Broadcom Push: Buy at $350, target $380, stop at $330. A 9% gain if $360 breaks.

  • Nvidia Lift: Buy at $170, target $190, stop at $160. A 12% upside if recovery holds.

  • AMD Surge: Buy at $151, target $175, stop at $145. A 16% rise if chips rally.

  • Broadcom Dip Hedge: Buy puts at $360, target $320, stop at $370. A 11% win if overbought.

  • Quick Flip: Buy AVGO at $350, sell at $360-$365, stop at $340. A 3-4% scalp.

Long-Term Investments

  • Hold Broadcom: Buy at $350, target $450 by 2026, for 29% upside if AI dominates. Stop at $320.

  • Hold Nvidia: Buy at $170, target $250, for 47% upside if data center rebounds. Stop at $150.

  • Chip Bet: Buy TSMC at $243, target $300, for 23% upside. Stop at $230.

  • Defensive Anchor: Buy PepsiCo at $185, target $200, for 8% upside. Stop at $180.

Hedge Strategies

  • VIXY ETF: Buy at $14, target $17, stop at $12, to offset volatility.

  • SPY Puts: Use puts at 6,500 for a 5-10% market drop.

  • Gold (GLD): Buy at $200, target $210, stop at $195, as a buffer.

My Trading Plan: Backing the AI Shift

I’m betting on Broadcom’s rise with a balanced approach. I’ll buy AVGO at $350, targeting $380, with a $330 stop, riding the AI wave. I’ll add Nvidia at $170, aiming for $190, with a $160 stop, for diversification. I’ll include TSMC at $243, targeting $265, with a $230 stop, and PepsiCo at $185, targeting $195, with a $180 stop. I’m hedging with VIXY at $14, targeting $16, and holding 20% cash for a dip to $320 or tariff news. I’ll monitor OpenAI’s impact and Nvidia’s data center updates closely.

Key Metrics

The Bigger Picture

On September 9, 2025, Broadcom’s $350.48 surge and Nvidia’s $170 recovery align with a 6,540 S&P 500 rally. A 7-9% rise to $375-$380 for AVGO is possible this week if $330 holds, with a $450 target (29% upside) by year-end if AI scales. A 5-10% dip to $315-$330 threatens if tariffs escalate, with $300 support. For NVDA, a 10% bounce to $187 is feasible, with $250 (47% upside) if data center grows, or a 5% drop to $161 if momentum fades. The AI rivalry heats up—back AVGO’s ascent or bet on NVDA’s rebound?

Broadcom vs. Nvidia: which AI king to back? Share below! 🎁

📢 Like, repost, and follow for daily updates on market trends and stock insights.

📝 Disclaimer: This post is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.

📌@Daily_Discussion @Tiger_comments @TigerStars @TigerEvents @TigerWire @CaptainTiger @MillionaireTiger

Broadcom Jumps 10%! AI Chip Rally, Is Nvidia’s Pullback Over?
Chip sector rally on Al optimism; Broadcomand Credo up 10%; Arm up 9%; Astera Labs up7%: Nvidia, TSMC and Micron up 3%
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • Venus Reade
    09-09
    Venus Reade
    Bought more this morning. AVGO is getting CHEAPER even with the price going higher. There are a couple of articles out there about that. This is a generational stock. It may not be long before they are second largest by market cap.

  • fuddie
    09-09
    fuddie
    Broadcom's momentum is impressive! Have you considered a strategy to hedge this potential rivalry?
  • Merle Ted
    09-09
    Merle Ted
    Everyone notice that AVGO trading volume still double the average volume.
  • SiliconTracker
    09-09
    SiliconTracker
    AVGO breaking resistance at 360 would be epic, NVDA needs to hold 170 first
  • BruceBryant
    09-09
    BruceBryant
    AI battle brewing
Leave a comment
5
2