Broadcom Rises 106% in a Year: Buy, Sell or Hold the AVGO Stock?

Broadcom AVGO shares have surged 106.3% in the trailing 12-month period, outperforming the Zacks Electronics – Semiconductors industry’s return of 71.4% and the broader Zacks Computer and Technology sector’s appreciation of 30.7%. AVGO is benefiting from strong demand for XPUs, which are a type of application-specific integrated circuits (ASICs) necessary to train Generative AI models. They require complex integration of compute, memory, and I/O capabilities to achieve the necessary performance at lower power consumption and cost. Alphabet and Meta Platforms are notable users of Broadcom’s ASICs.

Strong demand for XPUs, an innovative product portfolio, and an expanding partner base have helped Broadcom outperform peers, including NVIDIA NVDA, Marvell Technology MRVL and Advanced Micro Devices AMD. While shares of NVIDIA and AMD have returned 31.6% and 83.8%, respectively, Marvell Technology fell 0.4% in the past year. Will Broadcom continue to sustain its momentum?…