Nvidia and Broadcom defended at Bernstein

Bernstein keeps an Outperform rating with $175 price target on Nvidia (NVDA) and an Outperform rating with $220 price target on Broadcom (AVGO), saying the firm “continues to like” these names in particular within U.S. Semiconductors. The firm contends that DeepSeek does not represent a “doomsday” for AI buildouts that is playing out in the Twitterverse, stating that the oft-quoted “$5M” number is “not really what they did”, and does not include all the other costs associated with prior research and experiments on architectures, algorithms, or data. Bernstein adds that even when acknowledging that DeepSeek may have reduced costs of achieving equivalent model performance by 10x for instance, the current model cost trajectories’ increasing by about that much every year anyway “can’t continue forever”, and in that context, innovations like this are positive if AI is to continue progressing.