Chip stocks surged Monday, led by Broadcom and Advanced Micro Devices, following analyst predictions that demand for artificial intelligence (AI) will drive growth. UBS analysts raised their price target for Broadcom’s stock, citing the chipmaker’s AI revenue growth, while Rosenblatt analysts named AMD a “top pick” for 2025 due to its growing market share and AI potential.
Shares of Broadcom rose 5.5%, outpacing the S&P 500, after UBS increased its AI revenue estimates by 20% and 40% for fiscal years 2026 and 2027, respectively. The analysts maintained a “buy” rating and raised their price target to $270 from $220, implying a 16% premium.
Rosenblatt analysts also lifted AMD’s price target to $250, calling it a “top pick” due to its growing market share and AI potential. Despite Monday’s gains, AMD shares have lost about 15% in 2024. Other chipmakers, including Nvidia, Qualcomm, and Intel, saw their shares rise as well, with the PHLX Semiconductor Index climbing 3%.
Source: https://www.investopedia.com/broadcom-amd-lead-chip-stocks-higher-monday-on-anticipation-of-ai-driven-gains-8766031