Broadcom Inc. saw its shares fall by 2.5% along with other AI-related names, despite an increase in price target by BofA Global Research. BofA analysts raised Broadcom’s price target to $2,150 from $2,000, citing the company’s transformation from a value stock to a growth stock driven by AI and its recent acquisition of VMware.
Analysts at BofA pointed to Broadcom’s diverse growth drivers, strong management team, and history of capital appreciation and dividend growth as reasons for a potential premium multiple. While Broadcom’s drop was relatively modest compared to other AI-related names, such as NVIDIA and Super Micro Computer, which fell by 6% and 9% respectively, optimism over AI-related demand has contributed to a 44% gain in Broadcom’s shares so far in 2024.
Overall, despite the dip in Broadcom’s shares, analysts remain optimistic about the company’s future growth potential and see it as a strong player in the AI space moving forward.
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https://www.xm.com/research/markets/allNews/reuters/broadcom-dips-in-ai-selloff-bofa-raises-pt-53866839
