On Thursday, June 13, the value of Broadcom shares showed an increase of approximately 12% after the company published information on the economic results of its activities for the second fiscal quarter.
It is worth noting that the mentioned results exceeded analysts’ preliminary expectations for the dynamic of the corresponding indicator. Also, the relevant indicators have become evidence that Broadcom, based in San Jose, California, is one of the beneficiaries of the so-called boom of artificial intelligence.
For the fiscal quarter ended May 5, the company’s revenue amounted to $12.48 billion. This indicator showed an increase of 43% compared to the result for the same period last year. It is worth noting that the consensus forecast of analysts surveyed by LSEG provided that the company’s revenue would be fixed at $12.04 billion.
Broadcom, a developer and global supplier of a wide range of semiconductor and infrastructure software products, expects its sales volume for the 2024 fiscal year to be about $51 billion. It is worth noting that the consensus forecast of analysts surveyed by LSEG provides that the corresponding figure will be fixed at $50.42 billion.
In a note from Goldman Sachs analysts to investors, released on Thursday, it is underlined that, in their opinion, Broadcom, like Nvidia, is a critical element in the ongoing development of artificial intelligence infrastructure. Experts also reiterated their buy rating on the stock with an 8% potential upside to an updated 12-month price target of $1,850 from $1,550 prior.
Analysts at Bank of America also reiterated a buy rating of Broadcom. They also stated that this company, in their opinion, has the potential for growth in the area of custom artificial intelligence chips and Ethernet networks. Moreover, analysts at the financial institution noted that Broadcom can offer enterprise customers deploying AI more favorable prices for VMware.
As we have reported earlier, Nvidia Hits $3 Trillion in Market Value.
