Broadcom Inc. (NASDAQ: AVGO) has seen its stock price surge over 40% in the past week, driven by better-than-expected earnings and outlook, as well as upgrades from major Wall Street institutions. The company recently reported its Q4 fiscal 2024 results, with revenues of $14.05 billion and earnings of $1.42 per share, beating consensus estimates.
The stellar demand for Broadcom’s AI products has been a significant contributor to its top-line growth, with its AI revenue in fiscal 2024 standing at $12.2 billion, representing a 220% year-over-year increase. The company is also benefiting from the generative AI boom, with its wide range of networking and storage solutions, cybersecurity, and semiconductor offerings.
Broadcom’s solid growth has prompted an upward revision for its stock price by several Wall Street analysts, but most estimates are now met after the large 40% move seen in a week. The company’s acquisition of VMware is expected to drive further growth, and its AI chips with three large cloud companies, including Google and Meta, are generating strong interest.
While some might view Broadcom’s stock as fully valued at current prices, it has consistently outperformed the broader market over the past four years, generating returns of 56% in 2021, 104% in 2023, and 104% so far this year. The company’s peers offer valuable comparisons for investors looking to understand how Broadcom’s products and services stack up against industry leaders.
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Source: https://www.forbes.com/sites/greatspeculations/2024/12/17/whats-happening-with-broadcom-stock