Nvidia stock down after Broadcom earnings: buy, sell or hold?

Shares of Nvidia may have lost some of their recent momentum, but the artificial intelligence chip leader continues to attract high-profile investors.

Billionaire entrepreneur Leo Koguan revealed he purchased one million Nvidia shares and plans to add more to his position.

“I bought 1 million shares of NVDA last night; plan to buy more. I am convinced AI is NOT a bubble, it is only the beginning,” Koguan wrote on the social-media platform X.

Koguan is the co-founder of software company SHI International and is also one of the largest individual shareholders of Tesla, which accounts for much of his personal wealth.

“Tesla is embodied physical AI; NVDA is an enabler foundational layer of AI. AI is information that thinks, reasons, acts, walks, works and lives,” Koguan wrote.

While the investor did not disclose the exact purchase price, the timing suggests the stake is worth roughly $180 million based on recent trading levels.

Stock moves lower despite investment

Despite the high-profile endorsement, Nvidia shares slipped 0.6% in early Thursday trading as investors reacted to earnings from competitor Broadcom.

The results reinforced Nvidia’s own outlook for continued growth in artificial intelligence chip demand but also highlighted intensifying competition in the sector.

Broadcom pointed to strong demand for Google’s seventh-generation Ironwood tensor processing units, or TPUs, which it helped design.

The company said demand for the chips is expected to grow further in 2027 as future generations roll out.

Broadcom also said customers are increasingly using its custom AI chips, referred to as XPUs, to train artificial intelligence models.

Nvidia’s graphics processing units, or GPUs, have traditionally dominated this segment.

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China chip strategy shifts

Separately, the Financial Times reported that Nvidia has halted production of its H200 artificial intelligence chips intended for the Chinese market.

According to the report, the company has shifted manufacturing capacity at TSMC away from H200 chips toward its next-generation Vera Rubin hardware platform.

Last week Nvidia said it had received licenses from the US government allowing it to ship “small amounts” of H200 chips to Chinese customers.

However, the latest shift suggests the company does not expect significant H200 sales in China in the near term.

A US Commerce Department official said last month that none of Nvidia’s H200 chips had been sold to Chinese customers.

Earlier this year, the administration of Donald Trump formally approved sales of the chips to China, though shipments have remained stalled due to regulatory guardrails.

Wall Street remains bullish

Despite the competitive pressures and geopolitical constraints, Nvidia’s latest earnings report has drawn renewed support from Wall Street.

The company reported quarterly revenue of roughly $68 billion, representing a 73% increase from the same period a year earlier.

Growth was driven largely by continued demand for artificial intelligence infrastructure, particularly in the company’s data center segment.

Following the results, Baird reaffirmed its outperform rating on Nvidia and raised its price target to $300 from $275.

Wedbush also lifted its price target to $300 from $230 while maintaining an outperform rating.

Analysts pointed to Nvidia’s guidance for the upcoming quarter as particularly encouraging, noting that the company’s outlook exceeded expectations among many institutional investors.