Broadcom Stock Soars As Analysts Grow More Bullish On Chipmaker's Ai Potential

Broadcom (AVGO) shares rocketed higher Friday, a time aft nan company’s fiscal fourth-quarter results topped expectations, starring respective analysts to raise their value targets.

The chipmaker’s artificial intelligence (AI) pipeline “remains strong,” Citi analysts said Friday, aft Broadcom announced a brace of caller AI customers connected its net call. Broadcom didn’t sanction nan customers, according to a transcript of nan telephone from AlphaSense, but Citi speculated they could beryllium Apple (AAPL) and ChatGPT-maker OpenAI. Apple is reportedly moving pinch Broadcom to develop its own AI chips, according to reporting by The Information. 

Citi reiterated a “buy” standing for nan banal and raised its value target to $220 from $205. Shares of Broadcom jumped astir 20% to $215.92 successful early trading Friday, pushing its marketplace capitalization above nan $1 trillion level.

Broadcom reported its AI income much than tripled to $12.2 cardinal successful fiscal 2024, and Bank of America analysts suggested they could scope $30 cardinal by nan extremity of nan 2027 almanac year. The slope maintained its “buy” standing and lifted its value target to $250 from $215. 

Mizuho analysts were moreover much bullish connected Broadcom’s AI gross growth, projecting much than $50 cardinal successful AI gross successful fiscal 2027. The patient lifted its value target to $245 from $220 and reiterated an “outperform" rating.