Is Broadcom Stock Going to $2,150 in the Wake of Its 10-for-1 Stock Split Announcement? 1 Wall Street Analyst Thinks So

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].