Broadcom’s recent earnings-fueled surge has propelled its stock to record highs, surpassing the $1 trillion market cap mark. The chipmaker’s shares have more than doubled in value this year, joining Nvidia as a top performer in the S&P 500. However, analysts are split on Broadcom’s future prospects, with some predicting a limited near-term upside and others foreseeing significant growth driven by artificial intelligence demand.
Analysts point to AI-driven sales surging for Broadcom, which has more than tripled its revenue from AI year-over-year to $12.2 billion, contributing to total sales of over $51 billion. CEO Hock Tan expects the next three years to be a “massive opportunity” in AI, with customers expanding their infrastructure and his own business outgrowing other segments.
Despite this optimism, analysts’ average price target for Broadcom is $238, representing only partial recovery from recent losses. Bernstein analysts have an “outperform” rating, along with a $250 price target 12% above Wednesday’s close. In contrast, all but one of Nvidia’s analysts track by Visible Alpha hold a “buy” or equivalent rating, with a consensus price target implying roughly 37% upside.
Wall Street firms, including Bank of America and JPMorgan, have listed Broadcom as their top semiconductor industry picks for 2025, citing its AI leadership alongside Nvidia and Marvell Technology. Morgan Stanley analysts believe the stock has momentum building and expect it to present one of the most compelling ways to play AI semiconductors over the next 2-3 years.
Source: https://www.investopedia.com/will-broadcom-stock-have-its-nvidia-moment-in-2025-8762806