Broadcom is Aiming At $1950 Now?
Another AI friendly trend gainer and a crowd favorite, Broadcom, is reaching new highs. Its share price just took a leap of faith by nearly 13% in after-hours trading this Wednesday and continued moving upwards on today's pre-market to touch the $1,700 mark on raising its chip sales outlook plus solid, and even better-than-expected) quarterly numbers. Broadcom freshly reported its Q2 EPS (earnings per share) of $10.96 on revenue of $12.5 billion (a 43% pace of business growth YoY) vs consensus estimates for EPS of $10.85 and revenue of $12.06 billion. The giant's sales from semiconductor solutions, which are representing its core income, rose 6% vs Q2 2023 to $7.20 billion. Sales at the company's second largest infrastructure software segment (meaning branches like cloud computing) more than doubled amounting to $5.29 billion. It "accelerated as more enterprises adopted the VMware software stack to build their own private clouds," said Hock Tan, president and CEO at Broadcom. Besides, Broadcom increased its full-year forecast for 2024 full revenue by one more billion dollars, from $50 to $51 billion. Annual earnings before interest, taxes, depreciation and amortization (EBITDA) are now expected at 61% of revenue vs the company's previous outlook of 60%. Broadcom also decided to follow the recent example of NVIDIA to announce a 10:1 stock split as well (will be accomplished on July 11-12), which is going to make its very expensive shares more accessible to a broader range of Wall Street inhabitants.
What else does one need to know to cherish and preserve this AI-tied chips maker's stocks like the apple of our eyes? So, I am just happy and proud to have it as a part of my personal portfolio for many months. And I have nothing more to add to these details except maybe the fact that Bernstein, a reputable financial investment monster, immediately raised its price target for Broadcom shares to $1,950, up from the previous $1,600. Goldman Sachs set its target for Broadcom to $1,850 from the previous $1,550, which is also good enough as the move is giving at least a 8.8% space above to bet.
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