Broadcom, AMD Lead Chip Stocks Higher Monday on Anticipation of AI-Driven Gains | Global News Avenue

Chip stocks soared on Monday, led by BroadcomAVGO) and Advanced Micro Devices (AMD) after analysts expected rising demand to drive earnings higher Artificial Intelligence (AI).

Broadcom shares rose 5.5%, leading the S&P 500 index, after analysts at UBS raised the company’s artificial intelligence revenue forecast by 20% and 40% for fiscal 2026 and 2027, respectively. Analysts maintained a “buy” rating on the stock and raised their target price to $270 from $220, a 16% premium to Monday’s closing price of $232.35.

UBS isn’t the only firm bullish on Broadcom, with all 14 analysts surveyed by Visible Alpha giving the stock a “buy” or equivalent rating. However, their average price target is slightly lower at $249, implying room for 7% upside. Broadcom’s shares have more than doubled this year.

Meanwhile, Rosenblatt analysts called AMD a “top pick” for the first half of 2025, citing its growing market share and AI-driven potential, as well as benefiting from the “broader market.” AMD shares rose 4.5% to $124.60 on Monday. The non-AI recovery will end in 2025. ” They maintained a “buy” rating on the stock with a $250 price target, above the roughly $185 average compiled by Visible Alpha. Despite Monday’s gains, AMD shares are still down about 15% in 2024.

Stocks of other chipmakers including Nvidia (NVDA), Qualcomm (Qualcomm) and Intel (international trade center), also rose on Monday, with the PHLX Semiconductor Index (Sarbanes-Oxley) climbed about 3%.