NVIDIA and AST SpaceMobile have been featured as Zacks Bull and Bear of the Day

Press Release: Zacks Equity Research Highlights Key Stocks

Chicago, IL – March 2, 2026 – Zacks Equity Research has named NVIDIA (NVDA) as its Bull of the Day and AST SpaceMobile (ASTS) as the Bear of the Day. The firm also offers insights on Broadcom Inc. (AVGO).

Overview of Featured Stocks

• Bull of the Day: NVIDIA (NVDA)
• Bear of the Day: AST SpaceMobile (ASTS)
• Additional Analysis: Broadcom Inc. (AVGO)

NVIDIA: Bull of the Day

NVIDIA once again surpassed expectations with its fourth-quarter results, delivering outstanding performance and guidance. Despite not being fully valued before the report, the company managed to exceed even the highest forecasts—a remarkable feat given its size.

After the third-quarter report, analysts had underestimated NVIDIA’s future sales, projecting $275 billion for the next year. However, consensus estimates quickly rose to $293 billion, with some predicting as high as $327 billion. By early last week, forecasts for fiscal year 2027 had climbed to nearly $315 billion, and the latest results suggest even more upside.

Market Reaction and Opportunity

Following the report, NVIDIA shares saw more selling than buying, presenting a potential opportunity for investors focused on technology. The company’s strong Q4 gross margins of 75% and robust guidance for Q1—projecting $78 billion in revenue and maintaining high margins—demonstrate its pricing power and operational strength, even without factoring in sales to China.

NVIDIA has made significant supply chain commitments, increasing its investment in critical components from $50 billion to $95 billion to support demand for its Blackwell and Rubin platforms. CEO Jensen Huang emphasized that capital expenditures in AI infrastructure are expected to reach $700 billion this year, with the potential to grow to $3-4 trillion by 2030, driven by advancements in agentic AI.

The Capex-Compute-Inference-Revenue Cycle

Huang explained that capital investment leads to increased computing power, which in turn enables greater AI inference and ultimately higher revenues. He highlighted that the right architecture—one that maximizes performance per watt—is essential for maximizing returns on investment. NVIDIA’s CUDA platform, now ubiquitous across cloud providers, underpins this strategy, with over 1.5 million models on HuggingFace running on CUDA.

Research and development spending is set to reach $20 billion, as NVIDIA collaborates with partners on networking, chips, algorithms, and software. While hyperscalers and cloud service providers account for half of NVIDIA’s revenue, the other half comes from a diverse and expanding customer base, including enterprises, research institutions, and governments.

NVIDIA’s Networking Surge

NVIDIA’s networking division posted a remarkable 263% year-over-year growth, generating $31 billion in annual revenue. This surge is attributed to the company’s acquisition of Mellanox and its focus on providing end-to-end networking solutions for AI data centers. The integration of networking hardware with GPU systems creates a comprehensive package that is difficult for competitors to match.

As AI data centers become increasingly important, NVIDIA’s networking solutions are as critical to these systems as the circulatory system is to the human body. The company’s shift toward silicon photonics and vertical integration ensures it remains at the forefront of AI infrastructure development.

Looking Ahead

Analyst estimates for NVIDIA’s fiscal year 2027 revenue now stand at $337 billion, representing 56% growth, with some forecasts as high as $377 billion. The company is expected to continue innovating, with new chips for its Rubin platform anticipated at the upcoming GTC event. NVIDIA’s recent acquisition of Groq for $20 billion is expected to further enhance its architecture and competitive edge.

Kevin Cook, Senior Stock Strategist at Zacks, manages the TAZR Trader portfolio and holds positions in NVDA, TSM, and LITE.

AST SpaceMobile: Bear of the Day

AST SpaceMobile is set to report its fourth-quarter results, with analysts projecting $40.7 million in revenue—a 2,020% increase from the previous year. However, the company is expected to post a loss of 18 cents per share, a larger deficit than last year.

ASTS’s ranking dropped after full-year 2026 loss estimates widened from 74 cents to 90 cents per share. The company, which aims to build the first global cellular broadband network in space accessible by standard smartphones, has partnered with over 50 mobile network operators to reach nearly 3 billion subscribers.

Despite impressive revenue growth projections, ASTS’s valuation remains high, with a price-to-sales ratio of 145x at a $29 billion market cap. The company will need to deliver strong results and secure new contracts to justify its lofty valuation.

NVIDIA vs. Broadcom: Which AI Stock Is the Better Buy?

Both NVIDIA and Broadcom have delivered strong quarterly performances, but which is the better investment for March 2026?

Why NVIDIA Stands Out

• Reported record Q4 2026 revenue of $68.1 billion, up 73% year-over-year.
• Data center segment led growth, generating $62.3 billion, up 75% year-over-year.
• Guidance for Q1 2027 projects $78 billion in revenue, reflecting strong demand for AI infrastructure.
• Maintains industry-leading gross margins around 75%.

Broadcom’s Strengths

• Achieved record Q4 2025 revenue of $18 billion, a 28% increase year-over-year.
• AI semiconductor revenues surged 74% year-over-year.
• Projects AI semiconductor revenues to double in Q1 2026 to $8.2 billion.
• Exceptional profit margins, with adjusted EBITDA at 68% of revenue and strong free cash flow.

Comparative Analysis

While both companies are leaders in AI infrastructure, Broadcom’s higher debt-to-equity ratio (76.3%) compared to NVIDIA’s (6.3%) indicates greater financial risk. Additionally, NVIDIA’s shares are more attractively valued, trading at a lower forward price/earnings ratio than Broadcom.

Overall, NVIDIA emerges as the preferred choice due to its dominant position in data center AI, lower leverage, and compelling valuation. NVIDIA holds a Zacks Rank #1 (Strong Buy), while Broadcom is rated Zacks Rank #3 (Hold).

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Contact Information

Zacks Investment Research
800-767-3771 ext. 9339

Important Disclosures

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• Stock #1: Disruptive Innovator with Strong Growth
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Free Stock Analysis Reports

• NVIDIA Corporation (NVDA): Free Stock Analysis Report
• Broadcom Inc. (AVGO): Free Stock Analysis Report
• AST SpaceMobile, Inc. (ASTS): Free Stock Analysis Report

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