Huge News for Broadcom Stock and Nvidia Stock Investors! | AVGO Stock | NVDA Stock

Parkev Tatevosian, CFA•Jun 25, 2026

Summary

Parkev provides a comprehensive analysis of the semiconductor landscape following the announcement of a custom chip developed by OpenAI in collaboration with Broadcom. His main thesis is that the 'building of AI data centers' creates a massive opportunity where both Broadcom and Nvidia are the primary winners. He explains that major hyperscalers like Alphabet, Meta, and Microsoft are incentivized to find alternatives to Nvidia to improve their negotiating power and reduce costs, as Nvidia currently enjoys 75% gross profit margins and significant market dominance. This trend toward custom silicon for AI inferencing is a key driver for Broadcom's growth.

Market outlook and strategic arguments include:

Broadcom (AVGO): Parkev is highly bullish on Broadcom, noting its role in developing the 'Jalapeno' chip for OpenAI, which reportedly offers better performance per watt than current state-of-the-art chips. He recently added the stock to his portfolio, calculating an intrinsic fair value of $496 per share compared to the current market price of $381, suggesting it is significantly undervalued.

Nvidia (NVDA): Parkev maintains a positive outlook on Nvidia, ranking it among the top 10 to 12 stocks to buy despite the looming competition. He argues that as long as Nvidia continues to lead in innovation and demand exceeds supply, the entry of competitors is not a primary concern for investors, though it is a risk to monitor.

AMD and Intel (INTC): Parkev expresses a bearish view on these competitors relative to his top picks. He states that AMD and Intel are overvalued in the current market environment (referencing 2026 valuations in the transcript) and believes the upside and valuation of Nvidia and Broadcom are far more attractive for investors.

Mentioned Stocks

AVGO

Sentiment: BUYAction: BOUGHT

Reasoning: Parkev recently added Broadcom to his portfolio, citing its partnership with OpenAI to develop the 'Jalapeno' chip for AI inferencing. He calculates an intrinsic fair value of $496, which is well above the current market price of $381, and views it as an excellent way to diversify and hedge against Nvidia-specific risks.

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NVDA

Sentiment: BUYAction: RECOMMENDED

Reasoning: Parkev considers Nvidia one of the top 10-12 stocks to buy right now. While he acknowledges that competition from custom chips is increasing, he remains unconcerned as long as Nvidia stays a step ahead in innovation and demand for their GPUs continues to outstrip supply.

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AMD

Sentiment: SELL

Reasoning: Parkev explicitly avoided AMD, stating that he feels the stock is overvalued in the current market cycle (referencing 2026). He prefers the valuations and upside potential offered by Broadcom and Nvidia instead.

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INTC

Sentiment: SELL

Reasoning: Similar to his stance on AMD, Parkev views Intel as overvalued compared to the leaders in the AI data center space. He chose to focus his investment on Broadcom and Nvidia where he sees more attractive valuations.

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