Nvidia Stock Forecast Plummets as Analyst Warns of ’$12 Billion Broadcom Threat’

Nvidia's stock outlook just hit a major roadblock—and it's coming from an unexpected competitor.

The $12 Billion Broadcom Bombshell

Analysts are sounding alarms that Broadcom's aggressive moves in the semiconductor space could carve out a $12 billion chunk from Nvidia's dominance. That's not just pocket change—it's a direct assault on their core markets.

While Wall Street frets about traditional chip stocks, crypto investors are quietly smiling. Another day, another 'threat' that won't matter when the next bull run hits and everyone's chasing AI-driven blockchain tokens instead of legacy tech stocks.

Guess some analysts would rather chase yesterday's news than tomorrow's technology.

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One key reason for the cautious outlook is Broadcom’s (AVGO) advance into Nvidia’s turf. Broadcom recently reported strong results and highlighted new deals that could shift demand away from Nvidia’s GPUs. Citi estimates those deals could cost Nvidia as much as $12 billion in future sales.

While Nvidia remains the clear leader in AI chips, the warning shows its dominance is not immune to challenges from other suppliers who are securing their place in the AI boom.

China Is an Uncertain Market

Despite the near-term pressure, Nvidia still has potential upside from its China business. Shipments of GPUs to the Chinese market remain stalled, but Citi noted that a restart could provide a significant boost. For now, this uncertainty keeps investors uneasy as it adds another LAYER of volatility to Nvidia’s price forecast.

Broader AI Spending Offers Support to Nvidia

Even with the concerns, the broader AI spending boom continues to offer support for Nvidia’s story. Meta (META) CEO Mark Zuckerberg said over the weekend that his company could end up investing more than $600 billion in the U.S. by 2028 if AI progress accelerates. J.P. Morgan (JPM) analysts echoed that sentiment, saying that easier monetary conditions and relentless AI demand mean Nvidia’s earnings fears are not enough to dent the overall theme.

Moreover, the news also rippled across the chip sector. Advanced Micro Devices (AMD) was up 0.4% in premarket trading, while Broadcom (AVGO) added 1.1%. Both companies are seen as critical players in the AI hardware race, giving investors alternative ways to play the trend even as Nvidia faces turbulence in its price forecast.

Is Nvidia a Buy, Sell, or Hold?

Despite Citi’s price-target cut, the broader Wall Street view on Nvidia remains strongly bullish. Out of 39 analysts tracked in the past three months, 35 rate the stock a Buy, three suggest a Hold, and just one recommends a Sell. The average 12-month NVDA price target sits at $211.41, implying a 26.58% upside from the recent price.