The Nasdaq is expected to continue its rally in 2025, with Broadcom as a top pick.

From Nasdaq: 2024-12-25 04:05:00

The Nasdaq Composite has hit over 110 new all-time highs in 2024, fueled by AI adoption, waning inflation, rate cuts, and election results. The tech-focused index surged 43% last year and is up around 30% in 2024. Historical trends suggest the rally will likely continue into 2025.

Investors are exploring companies like Broadcom (NASDAQ: AVGO) post-stock splits, with the stock gaining 98% this year and 2,100% over a decade. A recent 10-for-1 stock split in July indicates continued growth potential in 2025 and beyond.

Broadcom’s extensive semiconductor and software products play a crucial role in various industries. The surge in generative AI adoption has led to a significant opportunity for Broadcom in data center upgrades, with revenue jumping 51% YoY in Q4.

Broadcom’s forecasted AI revenue growth of 391%-638% by fiscal 2027 and added hyperscale customers hint at robust future growth. Analysts are bullish on the stock, with a $234 price target and 88% buy ratings, while Jefferies analyst Blayne Curtis suggests a $300 target.

Despite trading at a premium valuation of 35 times forward earnings, Broadcom has outperformed the S&P 500 significantly in the past five years, indicating a buying opportunity. The company’s growth prospects and analyst recommendations support a bullish outlook for investors.



Read more at Nasdaq: History Says the Nasdaq Will Soar in 2025. 1 Stock-Split Stock to Buy Before It Does.