quick read
NVDA is currently priced 26% lower than its 52-week peak, with analysts projecting a target of $298. Meanwhile, AMD has secured a deal for 6 GW of Instinct GPUs with Meta.
The PHLX Chip Index suffered a 10% drop on June 5, marking its steepest single-day fall since March 2020, resulting in a loss of $1.3 trillion in the sector’s market value.
AVGO, with an average analyst price target of $522, plunged 22% in a week following an AI revenue guide that fell short of the anticipated $17 billion.
Now might be the time to act. Analysts who had previously recommended NVIDIA in 2010 have just listed it among the top 10 AI stocks. Interestingly, AMD didn’t make the cut.
The semiconductor sector is hitting June 2026 with another setback. After a spring surge that raised valuations to worrying levels, Broadcom’s third-quarter AI revenue forecast came in at $16 billion—short of the expected $17.2 billion—causing a downturn across the AI chip market.
The PHLX Chip Index’s drop of 10% on June 5 represents a significant decline, reflecting the largest single-day drop since March 2020, costing the sector around $1.3 trillion. Despite this, the overarching concept of AI infrastructure remains unchanged. It might be worth looking into three stocks that are currently trading below recent highs.
As of June 10, 2026, an infographic offers a comprehensive financial snapshot of NVIDIA, AMD, and Broadcom, showcasing their recent performance, analyst expectations, and key financial drivers in light of the recent market decline.
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) was trading at $200.42 on June 10, which is 26% below its yearly high of $236.26. Although up 39% over the past year, the stock has dipped 9% in the last month and 7% in the past week.
The upside is tied to the fiscal 2027 Q1 report from May 20, 2026. Revenues surged 85% year-over-year to $81,615 million, with non-GAAP EPS hitting $1.87, slightly above the expected $1.77. Data center revenues rose 92% year-over-year to $75.246 billion, and network revenue increased by an astounding 199%. The free cash flow stood at $48,554 million, and management anticipates second-quarter sales of $91 billion at a non-GAAP gross margin of 75%. CEO Jensen Huang pointed out that the construction of AI factories is ramping up quickly. Analysts are bullish on the stock, with 48 buy ratings against just one sell, and a consensus target of $298.42.
Risk: The guidance for the second quarter assumes no data center revenue from China, and management cautioned about a notable cash increase in that quarter. Export restrictions pose a potential risk.
Act now: Analysts who accurately predicted NVIDIA’s rise back in 2010 recently ranked their top AI stocks, and notably, AMD is not on that list.
Advanced Micro Devices (AMD)
Advanced Micro Devices (NASDAQ:AMD) closed at $452.40 on June 10, down 17% from $542.52 over the week. The stock is also 12% below its 52-week peak of $546.44 but is still up 111% year-to-date.
For Q1 2026, revenue was $10,253 million, a 38% year-over-year rise, with non-GAAP EPS of $1.37 surpassing the expectation of $1.29. Data center revenue reached $5.775 billion, reflecting a 57% year-over-year growth, and free cash flow improved by 253% to $2.566 billion. Management aims for about $11.2 billion in Q2 sales, projecting a 46% year-over-year growth and a gross margin of 56%. CEO Lisa Su noted increased customer engagement regarding the MI450 series and Helios, along with a multi-year deal to deploy 6 GW of AMD Instinct GPUs with Meta.
Risk: The company’s valuation is notably high, with a P/E ratio near 179 and a forward P/E ratio of 99. Ongoing export restrictions and capital expenditures for hyperscalers are additional risks to consider.
Broadcom (AVGO)
Broadcom (NASDAQ:AVGO) has experienced the most significant pullback among the three. As of June 10, shares were trading at $372.10, down 22% over the past week and a total of 13% in the previous month. It’s also about 5% below its yearly high of $495 following an earnings reset.
This decline is underpinned by strong fundamentals. For Q2 fiscal 2026, revenue amounted to $22,187 million, up 48% year-over-year, with non-GAAP EPS at $2.44, marking eight consecutive EPS updates. AI semiconductor revenue soared to $10.8 billion, up 143% year-over-year, and free cash flow hit $10.262 billion, accounting for 46% of revenue. CEO Hock Tan mentioned that he expects semiconductor revenue from AI to increase by over 200% year-over-year in Q3 to $16 billion, with an overall revenue outlook of $29.4 billion for the same quarter, which translates to 84% year-over-year growth. The average analyst target is $522.06, and bullish sentiment is prevalent, with 92% favoring a buy rating.
Risk: The drop in June was driven by AI revenue guidance falling short of a whisper figure of $17.2 billion and a reduction in gross profit expectations. With ongoing leverage and hyperscaler concentration, any missteps could have amplified consequences.
What to watch next
The decline in June has squeezed valuations in three critical areas without upsetting the ongoing demand curve for AI computing, accelerators, and custom silicon. With NVIDIA set to report $91 billion in revenue for the second quarter, AMD anticipating 46% year-over-year growth, and Broadcom expecting an 84% year-over-year growth in consolidated revenues for the third quarter, the next developments will depend on comments regarding hyperscaler capital expenditures and any changes to China’s data center export policies before the fiscal year concludes.
Act now: Analysts who predicted NVIDIA’s rise back in 2010 have once more identified their top AI stocks, and, perhaps unexpectedly, AMD did not make the list.
