technology

Nvidia falls deeper into correction territory as Broadcom rally continues


Jaque Silva | Nurphoto | Getty Images

Nvidia shares fell in premarket trading on Tuesday, as Broadcom continued its rapid surge higher.

Nvidia stock was down about 1.8% in premarket trading at 10:47 a.m. London time. On Monday, the company a entered correction territory — broadly defined as the point when a stock falls 10% or more from an all-time high close.

Nvidia hit its closing high of $148.88 last month.

In a tale of two chip stocks, Broadcom shares were 1.9% higher at 10:50 a.m. London time in premarket trade. Over the past five days alone, Broadcom shares have rallied 40%, while those of Nvidia have surrendered 5%.

Bullishness around Broadcom has been fuelled by the company’s release last week of fourth-quarter earnings that exceeded expectations and a revenue outlook for the current quarter that beat forecasts. A number of Wall Street brokers, including Goldman Sachs, have raised their price targets on Broadcom’s stock recently.

Broadcom shares have risen more than 120% this year to date, while Nvidia’s stock has added more than 160% over the same period.

This breaking news story is being updated.

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