Seaport Expresses Caution on NVIDIA and Broadcom

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Seaport believes that due to capacity constraints and intensifying industry competition, the share price upside for GPU leader NVIDIA (NVDA) is limited.

Seaport analyst Jay Goldberg wrote in a Thursday research note: "We maintain a cautious stance on NVDA. It is difficult for the company to deliver another blockbuster earnings beat — TSMC capacity is constrained, compounded by the law of large numbers. Time is not on their side, competitors keep rising, and NVIDIA now relies heavily on its balance sheet and product bundling to drive performance."

Goldberg is equally skeptical of NVIDIA's major rival Broadcom (AVGO), believing it faces similar constraints. He wrote: "Broadcom may win new custom ASIC customers, which could bring a surprise; but beyond that, it is currently hard to see much upside for performance."

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