Broadcom
Broadcom
AVGO
$20.56
1.51%
25%
IBD Stock Analysis
- Stock rebounding from 10-week line, 1403.61 initial entry.
- Broadcom recently rallied on a new AI chip customer.
Industry Group Rankings
The emerging pattern
Aggregation
* Not real time data. All data shown was retrieved on 04/04/2024 at 12:15PM EDT.
Broadcom ( AVGO ) is the IBD stock of the day as the semiconductor and infrastructure software provider is increasingly viewed as an AI stock. Broadcom stock is at record highs.
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In midday trading on the stock market today, Broadcom stock rose 1 percent to 1,377.48. This is just below its all-time high of 1,438.17, reached on March 4. Its high point occurred in the 20%-to-25% profit-taking zone of its breakout from earlier this year.
On Jan. 19, Broadcom stock broke out of the base climbing to a buy point of 1,151.82, according to the IBD MarketSurge chart.
After pulling back from its record high, Broadcom quickly bounced off its 10-week moving average line, MarketSurge charts show. An early entry can be seen at 1,403.61.
Bossing in AI event glow
Broadcom received a flurry of analyst reports on March 20 after the company held an investor event titled “Enabling AI Infrastructure.” At the event, Broadcom revealed that it has added a new customer for its AI chip business, which makes application-specific integrated circuits. , or ASICs.
In addition to custom AI processors, Broadcom also provides networking and switching chips for data centers. Recently, it has focused on artificial intelligence applications, which require high-speed and high-bandwidth capabilities.
At the AI event, Broadcom reiterated its goal of more than $10 billion in AI chip revenue this fiscal year. This will be 140 percent more than last year.
“Broadcom is very well positioned both in the near-term and long-term in both networking as well as custom accelerators,” Piper Sandler analyst Harsh Kumar said in a recent client note. “In our opinion, AI is a decade-long trend and Broadcom is well positioned, with active participation in all related connectivity products such as custom XPUs (multiple processing unit types), networking, and ancillary products such as optics.”
Kumar rated Broadcom stock as Overweight, or Buy, with a price target of 1,650.
2 Broadcom Stocks on IBD Lists
Meanwhile, Broadcom and the market leader Nvidia (NVDA) are “frenemies” in the AI chip space, Rosenblatt Securities analyst Hans Mossmann said in a client note. Consumers support both companies and their different technology approaches, he said.
“Nvidia’s AI compute roadmap (GPU-centric, proprietary CUDA, InfiniBand networking, and NVLink connectivity) and Broadcom’s ‘open’ standards (custom/merchant XPU, Open Ethernet, Open PCIe, power efficiency history) The setup in between is a battle. Titans over time,” Mossman said.
Mosesmann rates Broadcom stock a buy with a price target of $1,500.
Further, Broadcom stock is on two IBD lists: Big Cap 20 and Tech Leaders.
Follow Patrick Seitz at X, first on Twitter, at @IBD_PSeitz For more stories on consumer technology, software and semiconductor stocks.
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See the stock on the list of leaders near the point of purchase