Cantor Fitzgerald: NVIDIA Corporation (NVDA.US) and Broadcom Inc. (AVGO.US) are well positioned to outperform the market in 2026 and have reaffirmed them as top picks.

Cantor Fitzgerald said on Wednesday that semiconductor giants NVIDIA Corporation (NVDA.US) and Broadcom Inc. (AVGO.US) seem to be well prepared to "outperform the market" in 2026 after experiencing recent weakness. Analyst C.J. Muse wrote in a report to clients, "Artificial intelligence trading has clearly been a hot topic recently. Since early November, as the market entered a period of heightened risk aversion and concerns about an artificial intelligence bubble intensified, the artificial intelligence leveraged sector has been under pressure. We still believe that some of these concerns are overblown and short-sighted, only seeing the trees and not the forest, as we are on the cusp of a major turning point in demand for artificial intelligence." For NVIDIA Corporation, despite the fact that large language models based on Blackwell training have just begun to emerge, and with the rack-level "super cycle" of Blackwell and the upcoming Vera Rubin series GPUs set to commence, its stock price is currently only 16 times Cantor's expected earnings. Muse added that although Alphabet Inc. Class C (GOOGL.US) TPU continues to grow, which should boost market sentiment, Broadcom Inc.'s price-to-earnings ratio is 26 times Cantor's expected earnings. In addition, Muse noted that Broadcom Inc.'s networking business is also benefiting from increased spending on artificial intelligence infrastructure. Muse added, "Therefore, we are very confident in reiterating NVIDIA Corporation and Broadcom Inc. as top picks for 2026 and recommend building positions early."