Broadcom (AVGO) stock rallied on Monday alongside positive coverage from a top Wall Street analyst. Five-star J.P. Morgan analyst Harlan Sur reiterated a Buy rating for AVGO stock with no price target. The analyst has long been bullish on Broadcom, largely due to the ongoing AI boom, which has increased demand for components from the semiconductor company.
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Broadcom is well positioned to serve the AI sector, with its large range of semiconductor, enterprise software, and security solutions. There have also been recent reports that Broadcom could benefit from a deal with a major player in the AI space. According to insiders, Microsoft (MSFT) is in talks with Broadcom to source custom chips from the company. This would have it replace Marvell (MRVL) as Microsoft’s custom chip supplier.
Sur isn’t the only analyst who has recently praised Broadcom stock. Five-star Oppenheimer analyst
Rick Schafer also recently reiterated a Buy rating for the shares. However, the analyst also increased his price target to $435 from $400, suggesting a possible 8.67% upside for the stock.
Broadcom Stock Movement Today
Broadcom stock was up 2.21% on Monday, extending a 73.25% rally year-to-date. The stock has also increased 118.08% over the past 12 months.
Trading activity for Monday has resulted in some 6.5 million shares changing hands, compared to a three-month daily average of about 21.47 million units.
While the AI boom has been great for tech companies, it doesn’t come without concerns. There’s been considerable worry about the AI market being in a bubble, with some traders worried it will pop.
Is Broadcom Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Broadcom is Strong Buy, based on 22 Buy and two Hold ratings over the past three months. With that comes an average AVGO stock price target of $427.41, representing a potential 6.59% upside for the shares.
