Cantor Fitzgerald stated on Wednesday that semiconductor giants NVIDIA (NVDA.US) and Broadcom (AVGO.US) appear poised for market outperformance in 2026 following recent weakness. Analyst C.J. Muse noted in a client report, "AI trading has clearly been the recent focus, with AI-leveraged sectors under pressure since early November as markets entered a risk-off environment amid growing bubble concerns. We believe these fears are overblown and short-sighted, as we stand at the cusp of a massive inflection point in AI-related demand."

For NVIDIA, despite Blackwell-based large language models just emerging and the upcoming "supercycle" of Blackwell and Vera Rubin series GPUs, its stock currently trades at only 16 times Cantor's projected earnings. Muse added that while Google's (GOOGL.US) TPU growth should boost sentiment, Broadcom trades at 26 times Cantor's earnings estimates.

Additionally, Muse highlighted that Broadcom's networking business benefits from rising AI infrastructure spending. "As such, we remain highly confident in reiterating NVIDIA and Broadcom as top picks for 2026 and recommend building positions early," Muse concluded.