Evercore Stays Bullish on Broadcom (AVGO) After Earnings, Lifts Target to $490

Broadcom Inc. (NASDAQ:AVGO) is one of the AI Stocks in the Spotlight for Investors. On December 12, Evercore ISI raised its price target on the stock to $490.00 from $403.00 while maintaining an Outperform rating. The firm views Broadcom’s post-earnings dip as an attractive entry point based on its AI trajectory. AVGO’s revenue visibility further supports upside.

Broadcom posted October quarter results on December 11 after markets closed. The company’s revenue came in at $18.02 billion, solidly beating expectations of $17.46 billion. Meanwhile, adjusted earnings per share (EPS) rose 37% to $1.95, beating expectations of $1.87.

More importantly, growth in the artificial intelligence (AI) semiconductor business came in at 74%, beating Broadcom’s guidance of 66% growth. Despite these numbers, Broadcom shares plunged an estimated 4% after the earnings call ended.

The firm believes that this post-earnings plunge offers an attractive entry point for the stock.