Nvidia shares moved higher in early Wednesday trading, after an extended slump pushed the world’s leading AI-chip maker into correction territory, and as a top Wall Street analyst issued a bullish market outlook.
Nvidia has underperformed its chipmaking peers and the broader tech market over the past five weeks, falling more than 12.4% since reaching their all-time high of $148.88 on Nov. 7.
Some analysts have pointed to the gains for rivals, such as Broadcom (AVGO) and Marvell Technology (MRVL) , as evidence of increasing competition for Nvidia in the broader AI space. Those competitors have taken increasing an share of the market for custom-made ASIC chips.
ASIC chips help giant providers of cloud-networking infrastructure and services, like Alphabet (GOOGL) and Meta Platforms (META) , boost the speed and reliability with which they process information.
Broadcom Chief Executive Hock Tan in fact told investors on a conference call late Thursday that the group’s potential market for both its networking and ASIC offerings could rise to $90 billion over the next two years.
Marvell stock is up 26.5% over the past month and more than 92% for the year. On Dec. 4 it reported Wall-Street-beating earnings, reflecting a record $1.1 billion in data-center revenue, and a robust near-term outlook.
Citigroup analyst Atif Malik, however, expects Nvidia to hold its commanding market share well into the coming years.