Broadcom’s Stock Soars 11% on Monday, Reaching $250, as Wall Street Flocks to the CHIP Stock
Broadcom’s stock jumped 11% on Monday, driven by the company’s better-than-expected earnings report and an upbeat outlook for the first quarter. The surge came after the company’s shares topped $1 trillion in market capitalization on Friday and rose 24%, its best day on record.
The stock’s rally was spurred by increased price targets from Wall Street analysts, who are bullish on the company’s prospects. Goldman Sachs analysts lifted their 12-month target to $240 from $190, citing additional large customers for custom silicon. Barclays raised its price target to $205 from $200, while Truist increased its call to $260 from $245.
Broadcom’s strong performance is attributed to soaring demand for its semiconductors and infrastructure software, driven by the boom in generative artificial intelligence. The company reported a 220% jump in AI revenue for the year, with sales reaching $12.2 billion.
The company’s custom AI accelerators, known as XPUs, have also seen increased demand, with the company doubling shipments to its three hyperscale customers in the quarter. These customers are believed to be Meta, Alphabet, and ByteDance, the parent company of TikTok.
Broadcom’s stock has now risen 126% for the year, closing at $250 on Monday. The company’s market capitalization now stands at over $1.2 trillion, making it one of the largest publicly traded companies in the world. Its closest competitor, Nvidia, is up more than 165% this year, while the Nasdaq has gained 34%.
