From Nasdaq: 2024-06-24 17:22:33

Broadcom (AVGO) has seen extraordinary growth since its IPO, with shares returning close to 10,000% to investors in the last 15 years. With a market cap of $772 billion, the stock currently trades at $1,608 per share, prompting speculation about reaching $2,000 per share.

JPMorgan is bullish on Broadcom stock due to its leading position in markets like data centers and AI Ethernet switching. Analysts expect Broadcom to maintain its dominance with upcoming chipsets supporting AI clusters for tech giants like Alphabet and Meta. Sales in AI-based networking are predicted to triple by 2024.

Broadcom’s impressive growth can be seen through its acquisitions of major companies like CA Technologies and VMware, contributing to a 43% sales increase in fiscal Q2 of 2024. Wall Street expects earnings to grow by 12% in fiscal 2024 and 26% in fiscal 2025, making AVGO stock, priced at 28x next year’s earnings, an attractive choice.

Analysts tracking AVGO stock overwhelmingly recommend a “strong buy,” with an average target price of $1,813.23, representing a 12.8% increase from the current trading price. The highest target price reaches $2,100, indicating a potential premium of around 30% for investors.



Read more at Nasdaq: Can Broadcom Stock Hit $2,000 Per Share?