While Broadcom (NASDAQ: AVGO) may not have experienced explosive growth akin to that of other semiconductor giants, notably Nvidia (NASDAQ: NVDA), the company has still found considerable success in 2024.
Specifically, AVGO shares have surged by 67.37% since the beginning of the year, starting January 2, and stood at $181.51 as of October 21.
The stock’s activity during the first hour of trading on Monday highlights its consistent upward trajectory, showing a gain of 1.01%.
Broadcom’s achievements are further enhanced by its involvement in artificial intelligence (AI) and other significant operational advancements.
For example, the company is reportedly working to resolve a lengthy dispute with AT&T regarding accusations that it threatened to withhold licensed software following its VMware acquisition.
Furthermore, as of October 21, the circumstances surrounding VMware seem to be improving.
In light of a recent $5 billion bond issuance—completed with JPMorgan (NYSE: JPM), TD Bank, and Truist Securities—Broadcom has provided an optimistic outlook for 2025 in a bid to address the ongoing repercussions of its November 2023 acquisition.
Wall Street analysts adjust AVGO stock price targets
Clearly, analysts have acknowledged the various developments, along with the robust performance of the stock market, prompting them to adjust AVGO stock’s 12-month price targets recently.
On October 8, both Cantor Fitzgerald and Truist raised their price targets while maintaining their ‘buy’ ratings for Broadcom. Cantor Fitzgerald made a substantial increase from $200 to $225, whereas Truist adjusted its estimate slightly from $204 to $205.
Just two days later, DBS analyst Fang Boon Foo echoed Truist’s sentiments by confirming the ‘buy’ rating for AVGO stock and adjusting the price target from $204 to $205.
Mizuho Securities also aligned with other analysts, sustaining a ‘buy’ recommendation for Broadcom shares and raising its 12-month price target from $190 to $220.
Lastly, Bank of America (NYSE: BAC) similarly reacted positively to ongoing developments related to VMware and AI, maintaining its ‘buy’ rating on AVGO stock while lifting the price target to $215.
The revised 12-month price targets reflect a consensus across Wall Street regarding Broadcom stock.
As of October 21, data from TipRanks indicates that AVGO is classified as a ‘strong buy,’ with 23 analysts recommending ‘buy,’ 3 suggesting ‘neutral,’ and none advocating for a sell. Overall, Broadcom shares are expected to increase by another 11.65% over the next 52 weeks to reach $199.80.
The compiled data indicates that the price targets for October demonstrate a more cautious outlook compared to the peak of $240 from Rosenblatt Securities established in early September, yet still remain well above UBS’s lowest 12-month target of $170 set about a month and a half ago.
Importantly, even the $170 target, which suggests a decline from the current price of $181.51, was still accompanied by a ‘buy’ recommendation.
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