Semiconductor giants Nvidia (NVDA) and Broadcom (AVGO) appear to be “ripe for outperformance” in 2026, after a recent bout of weakness, Cantor Fitzgerald said on Wednesday.
“The AI trade has obviously been a key debate area lately, with the AI levered group pressured since early November as we entered a more risk-off environment with AI bubble fears at the forefront,” Cantor Fitzgerald analyst C.J. Muse wrote in a note to clients. “We continue to believe that these fears are overdone and shortsightedly missing the forest for the trees as we remain at the cusp of a massive AI- related demand inflection.”
For Nvidia, shares are trading at just 16 times Cantor’s earnings estimates, even as Blackwell-trained large language models are just starting to occur, and a rack-scale “supercycle” with Blackwell and the upcoming Vera Rubin line of GPUs kicking into gear.
Broadcom is trading at 26 times Cantor’s earnings estimates, even as Google’s (GOOG) (GOOGL) tensor processing units continue to ramp up, which should drive “positive sentiment,” Muse added. Additionally, Muse said Broadcom’s networking exposure is also benefiting from growing AI infrastructure spending.
“So, we are highly confident in reiterating NVDA and AVGO as [top picks] into CY26 and would recommend building positions sooner-rather-than-later,” Muse added.