Comparison of chip stocks Broadcom (AVGO) and Arm Holdings (ARM) with positive outlook for AVGO.

From Nasdaq: 2024-07-19 12:10:53

In this evaluation of chipmaker stocks, Broadcom (AVGO) and Arm Holdings (ARM) were compared using TipRanks’ tool. Broadcom focuses on data centers, AI, wireless, and more, while Arm focuses on CPUs and GPUs. Broadcom stock split, but has risen 44% YTD, while ARM is up 116%.

Broadcom’s split-adjusted stock price has surged 82% over the past year, with a favorable P/E ratio compared to the industry. A 25% potential increase in the next 12 months is forecasted. Despite recent volatility, long-term gains are expected.

Arm Holdings seems overvalued with a high P/E ratio and falling net income. Revenue growth remains strong, but market capitalization may be out of proportion. A bearish view is recommended, with an average price target indicating downside potential of 16%.

Broadcom’s stock has a Strong Buy consensus with a 23.2% upside potential. Arm Holdings has a Moderate Buy consensus with a 16% downside potential. Broadcom may be a good addition to a long-term portfolio, while Arm Holdings’ valuation seems too high for its growth.



Read more at Nasdaq: AVGO vs. ARM: Which Chip Stock Is Better?