Core Viewpoint - Wall Street analysts are increasingly optimistic about Broadcom, particularly due to its strong performance in the generative AI sector and the upcoming stock split [1][2]. Group 1: Analyst Ratings and Price Targets - Bank of America analyst Vivek Arya has maintained a buy rating on Broadcom and raised the price target to $2,150, indicating a potential gain of 35% over the next year [2]. - The stock has nearly doubled in value over the past year, reflecting a shift from a value stock to a growth stock [2]. Group 2: Financial Performance and Growth Drivers - Broadcom's second-quarter results exceeded expectations, with AI-related sales reaching a record $3.1 billion, accounting for 25% of total sales [3]. - The company has raised its full-year revenue forecast to $51 billion, up from $50 billion, which is considered conservative by analysts [3]. - Adjusted earnings per share (EPS) are projected to be $69 in fiscal 2026, with a forward price-to-earnings (P/E) ratio of 23, which is lower than the S&P 500's multiple of 28 [2]. Group 3: Historical Performance - Over the past decade, Broadcom's stock has surged by 2,130%, demonstrating significant long-term value for shareholders [3].

Core Viewpoint - Broadcom shares experienced a nearly 4% decline as part of a broader sell-off in leading chipmakers, driven by profit-taking from investors capitalizing on the strong performance of AI-related stocks this year [1][2]. Group 1: Stock Performance and Market Sentiment - The stock reached a record high earlier in the month but faced an intraday reversal, indicating a shift in momentum [3]. - Since the record high, Broadcom shares have formed three consecutive red bars on above-average volume, suggesting strong selling pressure from larger market participants [3][5]. - The shares have lost 14% of their value since hitting their all-time intraday high last Tuesday [5]. Group 2: Key Price Levels to Monitor - Key retracement levels to watch include $1,410, which may attract buying interest due to the 50-day moving average and previous price peaks [4]. - Support is expected around $1,225, linked to a trendline from earlier price action [4]. - A further decline could see the stock revisit $1,150, where buying interest may emerge near the December 2023 swing high and the rising 200-day moving average [4]. - The psychological level of $1,000 is significant, representing a 37% drop from Monday's closing price of $1,592.21, and also aligns with support from the November 2023 swing high [4]. Group 3: Potential Buying Signals - Investors should look for bullish price patterns, such as a hammer candlestick or a piercing pattern, at the identified key price levels to gauge potential buying interest [5].

Artificial intelligence has attracted plenty of capital from tech giants, fund managers, and various investors. This technology has driven up the S&P 500 and Nasdaq Composite to all-time highs as the top tech companies continue to benefit from AI tailwinds.While AI stocks seem like they can continue to soar forever, that’s not how the stock market works. Some investors will eventually take some of their profits and trim their positions. Others may become concerned about macroeconomic changes and exit their ...

Broadcom (NASDAQ:AVGO) and Bytedance are leading artificial intelligence (AI) stocks news on Monday following news of a partnership to develop new chips.According to insiders, Broadcom and Bytedance are working together to develop advanced 5-nanometer AI chips. This comes as Bytedance has bought 5-nanometer chips from Broadcom in the past.Investors will also note that the reports claim that Taiwan Semiconductor (NYSE:TSM) is going to manufacture the chips for the companies. The reports also claim that these ...

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PALO ALTO, Calif., June 24, 2024 (GLOBE NEWSWIRE) -- Broadcom Inc., which recently acquired VMware, today previewed highlights of VMware Explore 2024, the industry's essential cloud event. VMware Explore 2024 will kick-off in Las Vegas on August 26–29, 2024 at The Venetian Convention and Expo Center. That event will be followed by VMware Explore 2024 in Barcelona, Spain on November 4–7, 2024 at the Fira Gran Via. VMware Explore Las Vegas will include a general session featuring Broadcom leaders, VMware expe ...

Artificial intelligence (AI) is the driving force behind two of this year's best-performing stocks.Some companies create so much long-term value that their stock price soars into the thousands of dollars. That makes it hard for smaller investors to buy one full share, so those companies often execute a stock split, which increases the number of shares in circulation, and organically reduces the price per share by a proportional amount.Artificial intelligence (AI) is creating a mind-boggling amount of value ...

Three AI beneficiaries recently announced stock splits. But which is the better buy today?With the artificial intelligence revolution in full swing, share prices of favored semiconductor stocks have been on the rise. In late May, I identified five AI stocks that were due for a stock split. Lo and behold, three have already announced splits since then: Nvidia (NVDA -3.22%), Broadcom (AVGO -4.38%), and Lam Research (LRCX -1.03%), with Nvidia having already executed its 10-for-1 split on June 7. Broadcom will ...

Georgijevic Investment Thesis Broadcom Inc. (NASDAQ:AVGO) recently surged 20%, driven largely by a strong Q2 FY2024 earnings report. Like other semiconductor stocks, AVGO has seen significant price jumps due to the GenAI tailwinds, which is driving tremendous demand for Ethernet solutions and custom AI accelerators. The company has shown a strong rebound in revenue growth in the past two quarters and continues to accelerate its momentum. The company has already reached a revenue growth inflection point, lea ...

Broadcom and Nvidia have emerged as the two secular growth leaders of the AI industry.It may not quite be Nvidia, but top chip designer and infrastructure software provider Broadcom (AVGO -4.38%) has been on an epic run of its own. Broadcom stock is up just over 60% so far in 2024 -- upstaged just a little by Nvidia's more than 170% increase. What a year when being up "only" 60% doesn't set any best-of records! In tandem with its last earnings update, Broadcom also announced a 10-for-1 stock split that will ...