Nasdaq Correction? No Problem! Bet on NVDA & AVGO Stocks Right Away

The Nasdaq Composite has declined 3.97% over the past month, signaling a correction in the tech-heavy index. Market pullbacks often create opportunities for long-term investors to buy high-quality stocks at a discount. Among the biggest beneficiaries of the artificial intelligence (AI) revolution, NVIDIA NVDA and Broadcom AVGO have also seen significant declines of 4.69% and 7.05%, respectively, over the same period. Given their dominant AI hardware and infrastructure positions, do these stocks present a compelling buying opportunity for long-term investors?NVDA: The Unrivaled Titan of AI InnovationNVIDIA continues to assert its dominance in the AI computing space, with its Blackwell architecture setting new records for adoption. In the fourth quarter of fiscal 2025, data center revenues reached $35.6 billion, contributing to an annual total of $115.2 billion, more than doubling from the prior year. The Blackwell ramp was described as the fastest product launch in NVIDIA’s history, with demand driven by AI model training, post-training and inference workloads. Additionally, hyperscale cloud providers such as AWS, Google Cloud and Microsoft Azure were among the first to integrate NVIDIA’s new GB200 systems into their AI infrastructure. NVIDIA is also expanding into custom AI chips through collaborations with major firms, ensuring a diverse revenue stream beyond its standard AI GPUs.NVIDIA's fourth-quarter revenues of $39.3 billion were up 78% year over year, surpassing the Zacks Consensus Estimate of $37.7 billion. AI-related sales, particularly in the data center segment, have been the primary growth driver, now making up more than 80% of total sales. The upcoming Blackwell Ultra chips are expected to accelerate growth further as AI adoption expands beyond cloud computing into enterprises and sovereign AI initiatives.Despite a 4.69% stock decline, NVIDIA’s technological dominance, surging AI demand and rapid expansion into new markets position it as a strong long-term investment. Notably, NVDA's current valuation remains appealing, trading at a forward 12-month price-to-earnings (P/E) ratio of 28.05, which is below the industry average of 29.29, indicating potential undervaluation relative to its peers. Image Source: Zacks Investment ResearchAVGO: The Unstoppable Force Powering AI InfrastructureWith a staggering 77% year-over-year growth, Broadcom’s AI-related revenues surged to $4.1 billion in the first quarter of fiscal 2025, reinforcing its status as a dominant force in AI infrastructure. The company's leadership in AI networking and custom silicon is evident through its advancements in Tomahawk 6 switches and AI accelerators (XPUs), which are being used to build AI clusters at hyperscale. Broadcom has already engaged three major hyperscalers for large-scale AI accelerator deployments. It is now working with four additional hyperscalers to develop custom XPUs, further expanding its reach in the AI market. With a serviceable AI market opportunity of $60 billion to $90 billion by 2027, Broadcom is well-positioned to capitalize on the rapid expansion of AI infrastructure.Broadcom surpassed the Zacks Consensus Estimate in the first quarter, reporting $14.92 billion in revenues, marking a 24.71% year-over-year increase. The company expects AI revenues to grow to $4.4 billion in the second quarter, indicating continued momentum in AI-driven growth. Additionally, its VMware acquisition is accelerating Broadcom’s expansion into enterprise AI and cloud computing, with the VMware Private AI Foundation having already been adopted by 39 enterprise customers in collaboration with NVIDIA.Despite a 7.05% stock decline, Broadcom’s leadership in AI networking, strong hyperscaler partnerships and expanding AI-driven software infrastructure position it as a compelling long-term investment. Additionally, from a valuation standpoint, the stock trades at a forward 12-month price-to-earnings (P/E) ratio of 30.79, below its one-year median of 34.24, indicating a favorable entry point. Image Source: Zacks Investment ResearchLast Words: Seizing the AI OpportunityWith the AI market projected to reach unprecedented economic heights over the next decade, buying NVDA and AVGO on this dip could yield significant long-term gains. While AVGO sports a Zacks Rank #1 (Strong Buy), NVDA currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA): Free Stock Analysis Report Broadcom Inc. (AVGO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks