Broadcom (AVGO) stock added to Zacks Rank #1, surged 18% on tariff reduction news.

From Nasdaq: 2025-04-09 19:10:00

Broadcom’s AVGO stock was added to the Zacks Rank #1 list and surged 18% as markets rose on news of temporary tariff reductions. The chipmaker is benefiting from positive earnings estimates, with FY25 and FY26 EPS forecasts up 4% and 5% in the last month. AVGO is still down 20% YTD but has strong growth potential.

Broadcom’s dominance in ASIC chips, with up to 60% market share, is driving revenue growth. Collaboration with tech giants like Apple and Microsoft is fueling further expansion. Sales are projected to increase by 21% in FY25 and 16% in FY26, with earnings expected to soar by 35% this year and 19% in FY26.

Despite a YTD drop, AVGO stock has gained +200% in three years and +1,300% in a decade, outperforming industry benchmarks. Trading at 23.6X forward earnings, AVGO is near industry average and offers 34% upside potential based on the Average Zacks Price Target. Positive earnings revisions suggest the rally could continue.

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Read more at Nasdaq: Time to Buy Broadcom (AVGO) Stock as Markets Rip Higher