Shares of fabled chip and software maker Broadcom (NASDAQ:AVGO) rose 5.3% in the afternoon session after UBS analyst Timothy Arcuri raised his price target by $50 to $270 in a research note. The analyst announced the price update after raising his forecast for AVGO’s AI revenue for fiscal 2026 and fiscal 2027 by 20% and 40%, respectively. Arcuri’s improved forecast was based on a review of Broadcom’s actionable and addressable market intelligence and a reassessment of likely outcomes for its custom compute and AI networking businesses.
Shares ended the day at $232.56, up 5.3% from the previous close.
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Broadcom’s stock is highly volatile, having seen 25 moves of more than 5% in the past year. In that context, today’s move indicates that the market sees this news as meaningful, but not as something that would fundamentally change its perception of the company.
The previous big move we wrote about was seven days ago, when the stock rose 9.8%, as the stock continued its positive momentum following excellent earnings results the week before. Wall Street analysts also turned more bullish, with Goldman Sachs reaffirming its buy rating. In its research note, the company emphasizes: “We continue to view the company as a critical enabler in generative AI.”
Broadcom is up 115% since the start of the year and at $232.95 per share is trading close to its December 2024 52-week high of $250. Investors who bought $1,000 worth of Broadcom stock five years ago would be looking now to an investment worth $7,290.
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