Asia stocks surge as tech extends rebound, Dec rate cut bets grow
Investing.com - Bank of America maintains a positive outlook on leading semiconductor companies despite intensifying competition in the artificial intelligence chip market, which includes Google’s growing presence with its Tensor Processing Units (TPUs).
BofA analysts are recommending "Buy" ratings for NASDAQ:NVDA, NASDAQ:AVGO, and NASDAQ:AMD, noting that Nvidia could achieve "40%+ sales/EPS growth" while trading at approximately 25 times the market multiple. Meanwhile, Google (NASDAQ:GOOG), a key player in the AI hardware space, is currently trading at a P/E ratio of 31.65 with a market cap of $3.86 trillion. According to InvestingPro, the stock appears overvalued against its Fair Value estimate.
The firm believes Broadcom has "the upper-hand" in the AI market, projecting "~100%+ YoY AI sales growth in CY26 due to additional TPU and Anthropic projects." BofA notes Broadcom’s 38x CY26 PE ratio represents the highest spread versus Nvidia, reflecting a "justified premium."
The analysts caution that if Google licenses more Tensor Processing Units (TPUs) directly, it "might cut into AVGO’s direct TAM developing ASICs for other customers." Google’s strong financial position supports this strategy, with InvestingPro data showing the company holds more cash than debt and has seen an 88.79% price return over the past year. Discover 20+ additional ProTips and comprehensive analysis in Google’s Pro Research Report, available to InvestingPro subscribers.
AMD’s 33x CY26 PE ratio reflects its "broad-based growth drivers in CPU, GPU, embedded and gaming," according to the BofA research note.
In other recent news, Google has introduced the Nano Banana Pro, a new image generation and editing model leveraging its Gemini 3 Pro technology, which features improved text rendering and enhanced creative controls. This launch follows Alphabet’s introduction of the Gemini 3 large language model, which has been integrated into its Search, Gemini, and Cloud services. TD Cowen has maintained a Buy rating on Alphabet with a price target of $335, reflecting confidence in the Gemini 3 launch. Meanwhile, Evercore ISI has reiterated an Outperform rating on Expedia Group, despite concerns over Google’s new Canvas tool, which some fear could disrupt online travel agencies. Evercore believes these concerns may be exaggerated, as Canvas currently serves as a research and planning tool rather than a booking platform. In financial markets, Saba Capital Management has been selling credit derivatives to banks to hedge against potential losses from tech companies’ AI-related debt. Additionally, Google has committed $2.25 million to enhance AI-ready data systems in Africa, partnering with the UN Economic Commission for Africa to establish a regional Data Commons. These developments highlight Google’s ongoing efforts in AI innovation and global data infrastructure.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.