Broadcom Soars as Analysts See Long-Term Gains in AI Revolution
Fresh research on next-generation semiconductors has boosted Broadcom's stock price. The custom chip specialist closed Friday's trading session 1.2% higher, outperforming the S&P 500 index.
Analyst Harsh Kumar of BMO Capital Markets believes Broadcom is second in the semiconductor sector, with an 'outperform' (buy) recommendation and a $455 per share price target. He cites the AI revolution as a key driver, which he thinks will continue for years despite recent investor concerns about AI spending.
Kumar's argument was bolstered by JPMorgan Chase strategist Nikolaos Panigirtzoglou, who wrote that AI-related revenue is supporting capital expenditures for AI build-outs. While some investors may remain concerned about the significant ramp-up in AI spending, the trend suggests Broadcom and Nvidia will continue to benefit.