Ben Reitzes on Nvidia, Broadcom, and the Bullish Outlook for Chip Stocks in 2026

Bullish Outlook for Chip Stocks

• 💡 Ben Reitzes expresses a very bullish sentiment for chip stocks entering the new year.
• 🚀 He notes a current squeeze in memory stocks and semicap equipment, with large-cap companies like Nvidia and Broadcom expected to perform exceptionally well.
• 📈 More volatile names such as Intel and Marll are also anticipated to play catch-up, building on Intel's strong performance last year.

Intel's Speculative Potential

• ⚠️ While Nvidia is seen as a safer bet due to securing supply, Intel is considered a more speculative name.
• 🤝 Intel's prospects are bolstered by potential support from the US administration and its future foundry prospects.
• 📦 Key underappreciated assets include its great packaging assets and a promising process node (14A) in 2028-2029, attracting interest from companies like Nvidia and Apple.

Nvidia's Vera Rubin Chip and Token Economics

• 💰 The new Vera Rubin chip from Nvidia is highlighted for its significant cost reduction, being one-tenth the cost of Blackwell.
• ⚡ This chip is expected to enable next-generation models trained on Blackwell to compete with or surpass offerings like Google's Gemini.
• 🎯 Token economics, specifically tokens per dollar per watt, is identified as the critical factor for competitiveness, with Vera Rubin poised to make significant advancements.

The Growing Demand for Compute Power

• ⚡ Reitzes clarifies that despite efficiency gains, the demand for power and compute will continue to rise.
• 🚧 Challenges such as data center delays, labor shortages, and grid limitations will persist.
• 🤖 The significant growth in inference demand driven by autonomous AI agents operating in the background is a key factor contributing to this increased compute need.