Will Broadcom Stock Have Its ‘Nvidia Moment’ in 2025? | Global News Avenue

Chipmaker Broadcom’s (AVGO) latest earnings-driven growth makes it The latest member of the trillion dollar club. But what’s next for the stock?

Some Wall Streeters see AIDriven by demand, it is expected to push its chip sales to new highs and drive its stock price higher in 2025. But others are more cautious — at least in the short term.

Shares of both Nvidia and Broadcom have more than doubled through 2024, ranking among the S&P 500’s best performers of the year. However, analysts are more optimistic about the former, with high hopes for Nvidia in early 2025 and predicting that Broadcom’s next big breakthrough may come further down the line.

Broadcom’s “powerful AI story is finding its own”Nvidia moment“With the artificial intelligence business booming, analysts at Bernstein told clients on Monday. But they also warned that Broadcom’s “core business is still pretty bad” and that material opportunities could take years to emerge.

Broadcom’s AI sales soar

Broadcom’s recent gains have drawn comparisons to Nvidia’s meteoric rise.

Surge in demand for AI-enabled chips drives sales growth record level. Broadcom says revenue in fiscal 2024 will come from artificial intelligence more than tripled Year-on-year growth to US$12.2 billion helped its total annual sales exceed US$51 billion.

According to a transcript provided by AlphaSense, Broadcom CEO Hock Tan said on the latest earnings call that the company sees “huge opportunities in artificial intelligence over the next three years” and that several of its customers are still expanding their artificial intelligence infrastructure and Its own AI business is expected to outpace other segments.

However, analysts seem less sure about Broadcom stock’s upside. While all 14 Broadcom analysts tracked by Visible Alpha have a “buy” or equivalent rating, their average price target of $238 represents only a partial recovery from Wednesday’s losses and the all-time closing price set on Monday Falling from highs. .

Bernstein analysts predict that a “substantial opportunity” for Broadcom could take several years. They have an “outperform” rating on the stock and a $250 price target, about 12% above Wednesday’s closing price, after the stock fell 7% in December 2019. Fed-driven sell-off in tech stocks.

All but one of the 20 analysts tracked by Visible Alpha have a “buy” or equivalent rating on Nvidia, and their consensus price target is around $177, implying upside from Wednesday’s closing price of around $129 About 37%.

Broadcom names analysts’ top pick for 2025

Still, Broadcom remains a popular name on Wall Street.

Bank of America ranks Broadcom among its best picks in the semiconductor industry for 2025, identifying it as an “artificial intelligence leader” along with Nvidia and Marvell Technology (MRVL).

JPMorgan last week raised its target price on the stock to $250, calling the stock a “top pick” and saying it expects Broadcom’s artificial intelligence revenue to grow another 40% in fiscal 2025. As it grows, the market will be better in the next few years. Share will continue to expand its customer base.

Morgan Stanley analysts said “the stock is clearly subdued” and told clients they “expect momentum to build up from here.” They wrote that Broadcom could launch “one of the most compelling AI semifinals in the next 2-3 years” behind Nvidia.