Shares in Broadcom (AVGO) are among the best-performing in the S&P 500 index over the past week, rising 20% during that period. The semiconductor manufacturer’s stock hit a record high on Friday after beating analysts’ estimates for third-quarter revenue and earnings. Additionally, its announcement of $10 billion in artificial-intelligence orders from OpenAI was a bullish flag for stock investors.
Stock analysts maintain a positive stance on AVGO stock, suggesting continued momentum amid rising demand for AI semiconductors. Broadcom’s shares have outperformed the industry due to strong momentum in AI semiconductors and the successful integration of VMware. Additionally, the company’s existing roster of major clients, including Alphabet (GOOGL), Meta (META), and ByteDance, is already a promising factor that could fuel Broadcom stock’s growth. Adding OpenAI to further its footsteps in the AI industry is only a further driver in the point that AVGO is a valuable stock choice on today’s market.
Furthermore, Broadcom’s AI revenue already jumped 63% to $5.2 billion in Q3, with expectations of reaching $6.2 billion this quarter. The company’s total market cap has swelled to approximately $1.6 trillion as investors recognize its position alongside Nvidia in the AI infrastructure race. With robust fourth-quarter guidance of $17.4 billion in revenue and a diversified business, including its successful acquisition of VMware, Broadcom appears well-positioned to capitalize on the next phase of the AI boom.
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Analysts are divided on Broadcom AVGO’s potential price movement. While some have set price targets below the current market price of $350, others anticipate growth beyond today’s price. For example, Susquehanna and Cantor Fitzgerald both maintain a $300 price target, which is below the current market price of $345.65. In contrast, Rosenblatt and Benchmark set higher targets at $400 and $385, respectively. Rosenblatt’s 94.8 price target score indicates strong historical accuracy in predicting price targets, suggesting confidence in their higher forecast.