Nvidia stock pops 3% after slumping into correction territory

The chipmaker’s shares were up by about 3.5% before noon Wednesday after falling into a correction at market close Monday. Nvidia’s shares continued falling by almost 3% Tuesday. The company’s shares are up by 180% so far this year.

Meanwhile, rival chip designer Broadcom $AVGO (AVGO) closed up more than 11% Monday after it soared 20% Friday to surpass the $1 trillion market cap for the first time. The chipmaker reported a 220% jump in artificial intelligence revenue for the fourth quarter ended in November. On the company’s earnings call, Broadcom chief executive Hock Tan said it sees “our opportunity over the next three years in AI as massive.”

Bernstein analyst Stacy Rasgon wrote that Broadcom was having an “Nvidia moment” in a Monday note, reported by MarketWatch. Rasgon noted “a likely sharp new product ramp into [the second half of] 2025, and outlook for material opportunity … a few years out.”

However, Broadcom’s stock fell by more than 5% Tuesday, and its shares were down by more than 3% during Wednesday morning trading. The chipmaker’s shares are up by almost 103% so far this year.

Meanwhile, Microsoft $MSFT (MSFT) reportedly bought twice as many of Nvidia’s Hopper chips as its rivals this year. The tech giant is estimated to have bought 485,000 of the chips — more than double Nvidia’s second-largest U.S. customer, Meta $META (META), which bought 224,000, the Financial Times reported, citing analysts at technology consultancy Omdia. The analysts estimate Amazon $AMZN (AMZN) bought 196,000 Hopper chips, and Google $GOOGL (GOOGL) bought 169,000.