Broadcom Inc Stock Forecast:
According to 26 analysts, the average target price for Broadcom Inc stock over the next 12 months is USD 858.64. The consensus analyst rating is “Buy” and the 12 month target forecast is USD 864.50. Stock Target Advisor‘s analysis suggests a slightly bullish outlook based on 11 positive signals and 5 negative signals. As of the last closing, Broadcom Inc’s stock price was USD 789.95. Over the past week, the stock price has increased by +8.39%, over the past month by +23.83%, and over the last year by +37.71%.
Broadcom Inc. News:
Broadcom Inc (AVGO:NSD), has set its sights on record-breaking revenue as it capitalizes on the surging demand for AI-related technologies. The company’s third-quarter forecast, surpassing market estimates, has further solidified its position as a key player in the semiconductor industry.
The rise of artificial intelligence has sparked a frenzy of corporate investments in AI-related technologies, creating a fertile ground for semiconductor companies like Broadcom. The company’s success story has been amplified by the viral sensation of ChatGPT, an AI language model developed by OpenAI. As ChatGPT garnered widespread acclaim, orders for the chips that power the underlying technology at large data centers skyrocketed. This, in turn, has propelled semiconductor companies catering to this thriving market segment into a remarkable rally, with Broadcom leading the pack.
Broadcom’s Chief Executive, Hock Tan, expressed optimism about the future of generative AI and its impact on the company’s bottom line. Tan anticipates that generative AI, an AI subset that involves creating new content, could contribute more than 25% of Broadcom’s semiconductor revenue by 2024. This projection reflects both the company’s confidence in the technology’s growth trajectory and its commitment to meeting the increasing demand for AI-driven solutions.
The company’s third-quarter revenue forecast of approximately $8.85 billion has exceeded the expectations of analysts, who estimated revenue of $8.72 billion. This forecast demonstrates Broadcom’s confidence in its ability to leverage the ongoing AI boom and underscores its strong market position. In the second quarter, Broadcom experienced an 8% increase in revenue, reaching $8.73 billion, comfortably surpassing the estimated $8.71 billion. On an adjusted basis, the company achieved an earnings per share of $10.32, beating estimates of $10.08 per share.