This article first appeared on GuruFocus.
Sep 8 – Nvidia (NASDAQ:NVDA) stock moved higher on Monday, gaining about 2% in morning trading, even as fresh concerns about competition surfaced. Citi lowered its price target on the chipmaker to $200 from $210, citing signs that Broadcom (NASDAQ:AVGO) may be advancing more quickly in the race for AI-related processors.
Citi noted that Broadcom’s recent comments on stronger year-over-year growth for its XPU chips highlight potential risks for Nvidia’s long-term sales. Broadcom has pointed to demand from both new and existing customers, with Google reportedly among the companies adopting its technology. That shift could indirectly intensify pressure on Nvidia, especially as Google expands compute offerings to rivals like Meta Platforms, OpenAI, and Oracle.
The bank estimated Nvidia could see as much as $12 billion less in 2026 GPU sales under this scenario. While the near-term stock move remained positive, the longer-term picture shows increased competition in the AI hardware market.
Investors are now looking toward Nvidia’s next major update. CEO Jensen Huang is set to deliver the keynote speech at the company’s GTC event on October 28, a potential catalyst for fresh guidance and product updates.