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Nvidia, Broadcom stocks gain after Bernstein defends bullish ratings

Shares of Nvidia Corp. NVDA, -1.64% and Broadcom Inc. AVGO, -0.92% are up 1% and 0.five%, respectively, in premarket buying and selling after Bernstein analyst Stacy Rasgon reiterated his bullish scores at the two shares. Rasgon remains "broadly cautious" on the subject of the semiconductor business, but he is upbeat about Nvidia and Broadcom as they offer "relative" protection in case overall chip demand sours. "We recommend especially for Broadcom, which while impacted by way of Apple AAPL, -0.21% problems, has a de-risked wi-fi trajectory, advantages from datacenter publicity, strong money return (with a $12 billion buyback and just right dividend expansion), margin upside (with likely carry to goals in every other couple of quarters), firepower to do a $five billion to $10 billion bolt-on M&A deal, and is the most affordable in our coverage," Rasgon wrote. Nvidia, he mentioned, is exposed to fast-growing areas and has an "easier valuation versus recent history." Broadcom shares have risen 4.6% over the last 12 months, while Nvidia's inventory has climbed 64%. The PHLX Semiconductor Index SOX, +0.16% is up 26% up to now year and the S&P 500 SPX, +0.08% is up 12%.