Market Turmoil Creates Buying Opportunities for Nvidia and Broadcom

Concerns over a possible recession and rising tariffs between the U.S. and its trading partners are inducing notable volatility in the stock market. The tech-focused Nasdaq Composite has been particularly affected, falling 13.4% from recent peaks in December and 9.5% since the start of 2025.

In light of this downturn, some investors may be tempted to exit the market. However, for those who remain level-headed, opportunities for buying exist—if they know where to direct their attention. Recent reductions in stock prices for Nvidia (NASDAQ: NVDA) and Broadcom (NASDAQ: AVGO) could signal a favorable time to invest in these leading artificial intelligence (AI) firms.

Wondering where to invest $1,000 right now? Our analyst team has identified what they consider the 10 best stocks to purchase at this moment. Learn More »

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Nvidia’s Long-Term AI Outlook Remains Strong

Since the beginning of the year, Nvidia’s share price has plummeted by 20.4%. This decline might prompt skepticism regarding the semiconductor firm’s investment potential. While some investors are likely taking profits from gains earned over recent years, it is essential to acknowledge the factors that have established Nvidia as a leader in AI: its commanding position in AI processors.

Currently, Nvidia’s chips hold an estimated market share of 70% to 95% in the AI chip sector, a position unmatched by competitors. This leadership is particularly significant as AI investments are set to increase. CEO Jensen Huang projects that tech companies may invest approximately $2 trillion in data center infrastructure over the next five years.

Looking at recent performance, Nvidia’s data center revenue surged 93% to $35.6 billion in the fourth quarter of fiscal 2025, concluding on January 26. The demand for AI chips has partially stemmed from its new Blackwell processors, which garnered $11 billion in sales within that quarter—marking the quickest product ramp in Nvidia’s history.

The overarching trend indicates that AI data center spending is not just stable; it is accelerating. Despite the fluctuations in Nvidia’s stock price, the outlook for the company remains promising. Investors who can look beyond short-term market noise might find Nvidia stock at a bargain right now.

Broadcom: A Key Player in the AI Chip Market

Like Nvidia, Broadcom’s share value has also decreased by 20.4% since the year began, creating unease among some investors. Yet, it is crucial to evaluate Broadcom’s standing in the AI sector and its ongoing potential.

Broadcom excels in designing application-specific integrated circuits (ASICs) utilized in AI data centers by major tech companies such as Meta Platforms and Alphabet. The demand for its processors has risen dramatically amid the AI boom, leading to a 77% increase in Broadcom’s artificial intelligence revenue, which totaled $4.4 billion in the first quarter, concluded on February 2.

Notably, this revenue surge follows a remarkable 220% growth in Broadcom’s AI sales in 2024. The outlook includes sustained competition among tech firms for leadership in AI infrastructure, with hundreds of billions already allocated for new data centers.

The bottom line is clear: despite market upheaval, investment in artificial intelligence remains robust. The “AI cat” has been let out of the bag, and major technology companies are committed to investing in its development. This trend is anticipated to drive AI data center expenditures over years, not merely quarters, and Broadcom is poised to reap the benefits.

With the decline in Broadcom stock, investors now have the opportunity to acquire shares at a discounted rate as AI continues to expand.

Seize This Second Opportunity for Potential Gains

Have you ever felt like you missed out on purchasing the most successful stocks? You might want to pay attention now.

Our expert analysts seldom issue a “Double Down” stock recommendation for companies poised for significant gains. If you are concerned that the opportunity has passed, now is indeed the moment to invest before it potentially slips away. The statistics are compelling:

• Nvidia: An investment of $1,000 made when we doubled down in 2009 would have grown to $292,207!*
• Apple: A $1,000 investment from our 2008 double down would now be worth $45,326!*
• Netflix: If you invested $1,000 following our 2004 advice, it would now stand at $480,568!*

We currently have “Double Down” alerts for three remarkable companies. This opportunity may not present itself again soon.

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*Stock Advisor returns as of March 10, 2025

Randi Zuckerberg, former director of market development and spokesperson for Facebook, is a board member of The Motley Fool. Suzanne Frey, an executive at Alphabet, also serves on the board. Chris Neiger holds no positions in the stocks mentioned. The Motley Fool has investments in and recommends Alphabet, Meta Platforms, and Nvidia. The Motley Fool recommends Broadcom. The Motley Fool adheres to a disclosure policy.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Nasdaq, Inc.