Wall Street PR

Company

Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

1 Wall Street Analyst Thinks Broadcom Is Going to $260. Is It a Buy Now?

Date:

Shares of Broadcom (AVGO -2.37%) are suddenly soaring. The diversified semiconductor company impressed the market with its fiscal 2024 fourth-quarter earnings report last week, in particular its artificial intelligence (AI) growth.

Broadcom, which may be best known for networking chips, has become the No. 2 chip stock behind Nvidia in the AI race, and the company now seems to be fulfilling that promise.

The company said AI revenue jumped 220% to $12.2 billion in the fiscal year due to the growth of its AI XPUs and “Ethernet networking portfolio.” That made up nearly half of its $30.1 billion semiconductor revenue in the year. Now, Wall Street is taking notice with a number of analysts upgrading the stock and raising price targets in the aftermath of the report.

A pair of tweezers holding a chip over a circuit board.

Image source: Getty Images.

Truist expects more gains for Broadcom

Among the analysts reaffirming their bullishness on Broadcom was Truist, which raised its price target from $245 to $260 per share and reaffirmed its buy rating, according to media reports.

The price target hike was the bank’s second since Broadcom reported last week, reflecting the stock’s post-earnings surge as it is now up 33% as of Dec. 17. Based on the $260 price target, Truist believes Broadcom has near-term upside of 8%.

Truist was particularly impressed by management’s forecast that demand from three of its ASIC (custom chip) customers will reach $60 billion to $90 billion by fiscal 2027, implying a compound annual growth rate of 20% to 30% over the next three years.

Is Broadcom a buy?

Broadcom has been a longtime winner on the stock market, and today, the company is one of the most valuable companies in the world with a valuation topping $1 trillion.

Thanks to strategic acquisitions and organic growth, Broacom is well positioned to capitalize on AI demand. The stock still looks like a strong buy.

Jeremy Bowman has positions in Broadcom. The Motley Fool has positions in and recommends Nvidia and Truist Financial. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.

Go Source

Chart

SignUp For Breaking Alerts

New Graphic

We respect your email privacy

Share post:

Popular

More like this
Related

Chinese Yuan Breaks Pivotal 7.3 Level: Jan. 3, 2025

The dichotomy of fortunes is back on display today...

How to Request Market Data with the IBKR Python API

Your Privacy When you visit any website it may use...

Cerence AI Stock Soars 95%+ Following NVIDIA Partnership Announcement

Cerence AI’s expanded partnership with NVIDIA aims to revolutionize...

Economists Having Fun With Inflation

The other day I read a tweet complaining that since 1971...