Nvidia is rolling out Blackwell, its next-generation AI chip architecture. Meanwhile, Broadcom is chasing what could be a $90 billion opportunity by 2027.

With shares in an overbought situation following their earnings, Broadcom stock was in need of a short-term “correction” that would allow the stock to rest and provide an opportunity for investors to “buy the dip” before advancing higher in January.

Broadcom Inc (NASDAQ:AVGO) shares are trading lower Wednesday, pulling back from a recent surge that saw the stock join the $1 trillion club. Here's a look at what you need to know.

Nvidia is one of the most popular AI stocks right now because of its lead in the semiconductor space. The company's graphics processing units (GPUs) have been used in data centers for years, and once tech giants began competing for generative AI dominance, the chips were even more in demand.

Semiconductor stocks generally move together in tandem with the cyclical nature of the business. But 2024 is an exception to that, with five AI data center highfliers offset by the poor performance of the rest.