Despite a significant drop in late January on account of DeepSeek’s unexpected debut, Broadcom stock (NASDAQ: AVGO) is showing signs of recovery.
The price of AVGO shares skyrocketed from $179.33 on March 6 to $197.34 at press time. With this latest development, Broadcom stock is back in the green on the weekly chart with a 2.56% gain, although year-to-date (YTD) losses still stand at 14.88%.
So, what caused the sudden move to the upside? On March 6, the semiconductor giant released its Q1 FY 2025 earnings report. Earnings per share (EPS) came in at $1.60, above consensus estimates of $1.50. Revenues of $14.92 billion likewise outperformed the average forecast, which was pegged at $14.61 billion.
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In the aftermath of the double beat, two Wall Street equity researchers have revised their price targets for Broadcom shares.
Broadcom stock forecast
KeyBanc’s John Vinh maintained an ‘Overweight’ rating on AVGO stock. In addition, the analyst hiked his price target from $260 to $275. The researcher’s price forecast implies a 39.35% upside.
In a note shared with investors, Vinh highlighted that Broadcom recently announced two new AI ‘engagement partners’, bringing its total up to four. KeyBanc believes those partners include Apple and OpenAI. To boot, the analyst cited a 77% year-over-year (YoY) increase in AI revenue — and expects to see a 44% YoY increase in the coming quarter.
Stacy Rasgon, a Bernstein semiconductor analyst, likewise reiterated an earlier ‘Outperform’ rating on AVGO stock. The researcher maintained a $250 price target, which, if met, would equate to a 26.68% increase from current prices.
Rasgon commended the company’s solid execution, AI growth, and improving long-term visibility. Despite some weakness in the core business, the analyst anticipates that 3 nanometer products entering production in 2H 25 and continued AI strength will offset any present issues and drive accelerating upside in the latter half of the year.
These latest revisions are significantly more bullish than the coverage seen in late December — and mostly in line with the revisions Wall Street analysts made in the beginning of February.
Readers should also note that Broadcom stock could see short-term volatility — as the company is reportedly exploring a deal to acquire Intel’s chip design and marketing unit. While the acquisition would doubtlessly mesh well with Broadcom’s operations, when the news first broke, AVGO shares dropped — a small pullback, should the deal materialize, could present an appealing entry point.
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