Nvidia And Broadcom: Why The AI Mania Will Continue

Victor Dergunov Investing Group Leader Follow Summary Nvidia Corporation and Broadcom Inc. remain top "picks and shovels" AI plays, delivering exceptional earnings and bullish guidance. AI CapEx by hyperscalers is surging, with 2027 spending estimates for the top six players possibly exceeding $1.3T, fueling NVDA's and AVGO's growth. NVDA stock trades at a forward P/E below 15 and AVGO below 19, with forward PEG ratios near 0.4–0.44, implying significant upside if growth persists. I maintain 12-month price targets of $320 for NVDA and $500 for AVGO but caution that an eventual AI bubble burst could trigger a severe crash. Looking for a helping hand in the market? Members of The Financial Prophet get exclusive ideas and guidance to navigate any climate. Learn More » Alexander Sikov/iStock via Getty Images Nvidia Corporation ( NVDA ) and Broadcom Inc. ( AVGO ), the top two companies powering the AI revolution at its base, reported outstanding earnings and guidance numbers recently. Now, I've been bullish on numerous high-quality AI stocks This article was written by Victor Dergunov 56.57K Followers Follow Hi, I’m Victor Dergunov, MBA, and I’ve been an active investor for over 20 years. My passion for investing started early, and I’ve spent two decades honing strategies that consistently deliver results. Whether it's tech giants like Apple and Tesla or opportunities in commodities and crypto, I provide diversified insights to help you succeed. Join me, and let’s take your investing to the next level. Analyst’s Disclosure: I/we have a beneficial long position in the shares of NVDA, AVGO, LITE,BE, COHR, NBIS, MU, IREN, CIEN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. I am long a diversified portfolio with hedges. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.