This article first appeared on GuruFocus.
Nvidia (NASDAQ:NVDA) and Broadcom (NASDAQ:AVGO) may be positioned for potential gains in 2026, Cantor Fitzgerald said Wednesday, following a period of recent weakness in semiconductor stocks.
Analyst C.J. Muse noted that AI-related stocks have faced pressure since early November amid broader market caution and concerns over an AI valuation bubble. Muse said these concerns might be overstated, given growing demand tied to AI infrastructure.
Nvidia shares are trading at roughly 16 times Cantor’s earnings estimates. The rollout of next-generation hardware, the Rubin GPU architecture and the custom Vera CPU, which together form the Vera Rubin platform, is expected to support massive-context AI workloads and data center growth.
Broadcom is valued around 26 times Cantor’s earnings estimates. Muse highlighted the company’s networking business and its role in supporting Google (NASDAQ:GOOG) tensor processing units, which could further benefit from AI-driven infrastructure spending.
The firm reiterated Nvidia and Broadcom as top picks for 2026, suggesting investors consider establishing positions ahead of anticipated AI-related growth, according to a Wednesday press release.