Full Breakdown
Bernstein Stays Bullish on Nvidia and Broadcom Despite AI-Model Slowdown Calls
By Drooid · · How we work
Bernstein’s Core Call
Bernstein analysts, led by chip-sector specialist Stacy Rasgon, reaffirmed buy-equivalent outperform ratings on Nvidia (NVDA) and Broadcom (AVGO). “We would still own both Nvidia and Broadcom ,” — Bernstein
Valuation Context
Bernstein set a $400 price target for Nvidia—about 75 % above its recent $229 close—and a $575 target for Broadcom, roughly 58 % above its $365 close. Forward price-to-earnings (P/E) ratios are 17× for Nvidia and 19.7× for Broadcom, well below their five-year averages of 35× and 23× respectively, and also under the S&P 500’s forward P/E of 19.56×. The analysts argue that such discounts provide a cushion if AI sentiment eases.
Broader AI Chip Landscape
The note also highlighted multiyear visibility, tight supply, and capacity constraints across AI-related components. Rasgon’s team cited Nvidia’s projected 70 %+ growth through 2027 and Broadcom’s potential to double revenue in 2027 and again in 2028.
In parallel, Bernstein’s view on Intel (INTC) turned more positive. The firm noted Intel’s third-party manufacturing and packaging business as a “sweetener” for the AI compute boom, and described the company’s server strength as helping it regain footing.
Executive Responses
When asked about industry-wide calls for coordinated AI regulation, Nvidia CEO Jensen Huang told Jim Cramer that AI firms can take as much time as needed to release safe products, but saw no need for a coordinated effort or government intervention. Broadcom CEO Hock Tan, speaking on “Mad Money,” said he is not changing his forecasts despite the regulatory debate.
What Analysts See Next
Bernstein expects the data-center opportunity for Nvidia to remain “enormous” and projects Broadcom’s AI trajectory to “accelerate markedly” over the next two years. The firm’s bullish stance persists even as other market participants, such as Jim Cramer’s Investing Club, maintain lower price targets ($280 for Nvidia, $430 for Broadcom) and a more cautious rating on Broadcom.