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Updated at 10:22 AM EST
Nvidia shares moved higher in early Wednesday trading, after an extended slump pushed the world's leading AI-chip maker into correction territory, and as a top Wall Street analyst issued a bullish market outlook.
Nvidia (NVDA) has underperformed its chipmaking peers and the broader tech market over the past five weeks, falling more than 12.4% since reaching their all-time high of $148.88 on Nov. 7.
Related: Nvidia's chip delays may be costing it customers in key sector
Some analysts have pointed to the gains for rivals, such as Broadcom (AVGO) and Marvell Technology (MRVL) , as evidence of increasing competition for Nvidia in the broader AI space as the pair take an increasing share of the market for custom-made ASIC chips.
ASIC chips help giant providers of cloud-networking infrastructure and services, like Alphabet (GOOGL) and Meta Platforms (META) , boost the speed and reliability with which they process information.
Broadcom shares have gained more than 45% over the past month alone and have passed $1 trillion in market value and the group posted stronger-than-expected fourth-quarter earnings last week.
Custom chip challenge to Nvidia
Broadcom CEO Hock Tan in fact told investors on a conference call late Thursday that the group's potential market for both its networking and ASIC offerings could rise to $90 billion over the next two years.
Marvell stock is up 26.5% over the past month and more than 92% for the year and reported Street-beating earnings in early December including a record $1.1 billion in data center revenue and a robust near-term outlook.
Citigroup analyst Atif Malik, however, expects Nvidia to hold its commanding market share well into the coming years.
Related: Analysts overhaul Broadcom stock price targets after Q4 earnings
Malik, who reiterated his buy rating and $175 price target on Nvidia in a note published Wednesday, sees the market for AI accelerators rising to a staggering $380 billion by 2028, "with AI [graphics-processing units] representing 75% of share and ASIC representing 25%."
Strong results from recent custom ASIC chipmakers Marvell and Broadcom "are stirring up new investor questions on the old 'GPU vs custom ASIC' debate," Malik and his team wrote.
"As highlighted in our recent report, we expect both to coexist with the software reprogrammability to different workloads through CUDA being the biggest advantage for GPUs/Nvidia," they added.