Broadcom (NASDAQ: AVGO) had a good 2024 — but the release of the company’s Q4 and full-year 2024 earnings report on December 12 was an inflection point.
Earnings per share (EPS) came in above analyst expectations — while revenues came in slightly under, but still posted a 51% year-over-year (YoY) increase. Artificial intelligence (AI) revenue expanded by 220% on an annual basis — the company surpassed a $1 trillion market cap for the first time, and increased its dividends by 11%
The price of AVGO stock skyrocketed from $180.66 to $250, a new all-time high (ATH), on December 16. By the end of the year, Broadcom stock closed at $231.84. However, as a semiconductor stock in the AI space, the release of DeepSeek, which hit many of the company’s rivals quite hard, didn’t spare Broadcom either.
Picks for you
On January 27, the stock closed at $202.13 — 17.40% lower than on the day prior. By press time, the price of AVGO stock had recovered to $232.88, with a 6.36% surge on the daily chart bringing year-to-date (YTD) returns up to 0.45%.
As significant as the development has been, Wall Street hasn’t abandoned its earlier, bullish perspective on the semiconductor company. Quite a few analysts have revised their price targets as of late — and most still believe that Broadcom has room to grow.
Analysts continue to be bullish on AVGO stock
Morgan Stanley (NYSE: MS) analyst Joseph Moore decreased his price target for Broadcom stock to $246 from $265. If met, Moore’s revised price target would equate to a 5.63% upside.
However, he doubled down on a previously issued ‘Strong Buy’ rating. Moore cited DeepSeek’s impact — noting that it could lead to stricter export regulations or dampen consumer enthusiasm. Despite maintaining a bullish outlook on the sector, Morgan Stanley cut their price targets for semiconductor companies directly involved with AI.
Tom O’Malley, a Barclays researcher, also reiterated an earlier ‘Overweight’ rating. Unlike Moore, O’Malley increased his price target — from $205 to $260, representing an 11.64% upside.
The hike came about after Barclays established FY 2026 estimates for the semiconductor industry. In addition, the analyst added that Barclays is pickier than some about its AI investments, and favors companies that have developed their serializers and deserializers, such as Broadcom.
Finally, Vijay Rakesh of Mizuho reissued a prior ‘Buy’ rating, while increasing his 12-month price forecast for AVGO stock from $245 to $260. In a note shared with investors, Rakesh told readers that Mizuho is bullish on the PHLX Semiconductor Index — in which Broadcom has the biggest weighting at 13.49%, followed by Nvidia (NASDAQ: NVDA) at 10.17%.
Featured image via Shutterstock
