Analysts responded positively, with Bernstein raising their price target to $250 and Bank of America reiterating a buy rating due to Broadcom's strong AI opportunities. Despite some concerns about competition from Nvidia, analysts from Morgan Stanley and others expressed optimism about Broadcom's long-term prospects in AI semiconductors. They noted that the company's strong AI narrative and custom chip development could drive continued enthusiasm and growth over the next few years.
Key takeaways:
- Broadcom's shares surged over 21%, pushing its market cap beyond $1 trillion for the first time, following strong fourth-quarter results and AI revenue growth.
- The company reported $14.05 billion in revenue for the fourth quarter, with AI revenue jumping 220% for the year to $12.2 billion.
- Analysts are optimistic about Broadcom's AI prospects, with Bernstein raising their price target and Bank of America reiterating a buy rating due to the company's strong position in custom AI chips.
- Morgan Stanley analysts believe Broadcom remains a compelling option for AI semiconductors, with long-term enthusiasm expected to continue building.