Broadcom’s shares surged 5.3% on Monday as a Wall Street analyst upgraded the company’s price target from $220 to $270 per share. The positive move comes after Broadcom provided strong guidance for its AI-related revenues in 2027.
UBS analyst Timothy Arcuri raised his estimates, predicting 20% higher earnings per share (EPS) for 2026 and 40% growth for 2027. This suggests that Broadcom’s artificial intelligence business is poised for significant expansion.
However, Arcuri notes that the estimates “could be conservative” if Broadcom lands more customers for its custom ASIC segment, which builds AI chips for large tech companies like Apple. If this happens, the projected $60 billion to $90 billion in AI-related revenues could expand significantly.
The upgrade has led to a significant boost in Broadcom’s stock price, with shares hitting Arcuri’s revised target. The analyst’s bullish stance on the company’s future growth prospects makes it a promising opportunity for investors.
Source: https://www.fool.com/investing/2024/12/23/why-broadcom-was-rallying-again-today