Broadcom Inc.’s Stock Price Skyrockets to $224.80, Marking a Stellar 24.43% Increase

Broadcom Inc. (AVGO)

224.80 USD +44.14 (+24.43%) Volume: 118.67M

Broadcom Inc.’s stock price surged to 224.80 USD, marking an impressive intra-day gain of +24.43%. With a robust trading volume of 118.67M, the semiconductor giant boasts a year-to-date increase of +61.85%, demonstrating its robust market performance and making it a potentially lucrative investment.

Latest developments on Broadcom Inc.

Broadcom stock surged today as the company highlighted a ‘massive’ AI opportunity, with plans to develop AI compute engines and supercomputers. Apple’s transition to in-house Bluetooth and Wi-Fi chips, as well as collaboration with Broadcom on AI chips, also boosted stock prices. Analysts revised price targets after Broadcom’s Q4 earnings, leading to a 21% jump and a trillion-dollar valuation milestone. The company’s strong AI chip demand forecast and revenue outlook for Q1 further fueled investor optimism, propelling Broadcom to join the elite trillion-dollar market cap club.

Broadcom Inc. on Smartkarma

Analysts on Smartkarma are closely monitoring Broadcom’s performance, with a bullish sentiment prevailing among top independent analysts. Nicolas Baratte‘s research highlights Broadcom’s strong growth potential in AI revenue, projecting revenues of US$12.2 billion in FY24 and a market opportunity of $60-90 billion in FY27. This positive outlook extends to suppliers like SK Hynix and TSMC, with the stock up 14% aftermarket. Similarly, Baptista Research notes Broadcom’s impressive fiscal third-quarter performance in 2024, reporting consolidated net revenue of $13.1 billion, a 47% increase year-on-year. The growth streak is attributed to AI revenue, accelerated bookings at VMware, and stable non-AI semiconductor revenue.

Uttkarsh Kohli’s analysis of Broadcom’s Q3 earnings reveals a revenue of $13.07 billion, surpassing estimates, but concerns arise from weaker Q4 revenue guidance leading to a 7% drop in shares. Despite the 47% YoY revenue surge, a $1.88 billion net loss was reported due to a $4.5 billion tax provision. Looking ahead, AI revenue is projected to grow by 10% sequentially in Q4, exceeding $3.5 billion. Kohli also anticipates a total AI revenue of $12 billion for fiscal 2024. The bullish sentiment continues with Baptista Research highlighting Broadcom’s strategic advancements in expanding AI and networking technologies, showcasing a notable 43% revenue increase YoY in the second quarter of fiscal year 2024.

A look at Broadcom Inc. Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, Broadcom has a positive long-term outlook. With a high score in Dividend and Momentum, the company is seen as a strong performer in terms of providing returns to shareholders and maintaining upward momentum in the market. Additionally, its Growth score indicates potential for expansion and development in the future. However, lower scores in Value and Resilience suggest that there may be some areas for improvement in terms of the company’s overall value and ability to withstand economic challenges.

Overall, Broadcom Inc. is a company that designs and supplies semiconductor and infrastructure software solutions. With a focus on modernizing, optimizing, and securing complex hybrid environments, Broadcom serves customers globally. The Smartkarma Smart Scores highlight the company’s strengths in terms of dividend payouts and market momentum, indicating a positive outlook for the company’s future growth and performance.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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