By Emily Dattilo
Broadcom's artificial intelligence event left Wall Street feeling quite optimistic about the chip maker's stock.
On Thursday, TD Cowen analysts led by Matthew Ramsay upgraded shares of Broadcom to Outperform from Market Perform and lifted their price target to $1,500 from $1,400 after attending the company's artificial intelligence event on Wednesday.
Broadcom stock was up 2.9% to $1,312.44 in recent trading Thursday. Over the last 12 months, shares have gained 112%, soundly outpacing the 59% jump from the iShares Semiconductor ETF, also known by its ticker, SOXX.
"Our rating has admittedly been on the wrong side of this remarkable franchise for some time now, as the stock has outperformed the broader SOXX index by 50% over the last two years," analysts wrote. "Despite this recent run we are confident in sustainability and diversity of growth and potential upside to consensus' forward estimates driven by AI compute/networking and software growth/margins."
TD Cowen presented a few different near-term catalysts that could boost the stock, including the announcement of a new third customer in the consumer artificial-intelligence space. Broadcom didn't immediately respond to a request for comment.
Benchmark analyst Cody Acree called that third customer announcement the most interesting takeaway from the AI event. He reiterated his Buy rating and $1,720 price target in a Wednesday report.
Raymond James analysts Srini Pajjuri and Jacob Silverman, who rate shares at Market Perform, also weighed in.
"Overall, we came away impressed with the breadth and depth of AVGO's product offerings for Data Center and AI markets, and expect Gen AI to remain a key growth driver for the company's Semi segment for the foreseeable future," they wrote Thursday.
Write to Emily Dattilo at emily.dattilo@dowjones.com
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(END) Dow Jones Newswires
March 21, 2024 10:22 ET (14:22 GMT)
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