Broadcom Inc AVGO stock reached a new all-time high of $1,284.55 on Wednesday during the trading day.
Buoyed by the ongoing semiconductor boom, the high-end of the 52-week range for the stock now stands at $1,284.55. The fabless giant, renowned for its extensive range of semiconductors and infrastructure software solutions, has experienced a meteoric rise, fueled by the AI-fueled semiconductor surge, propelling Broadcom’s stock over 114% higher in the past year – vastly outperforming industry-tracking iShares Semiconductor ETF SOXX and the broad market S&P 500 Index, which has gained 21.20%.
In the past year, Broadcom’s stock has been propelled by strong growth from AI solutions and a cyclical recovery in its core semiconductor business.
Broadcom stands in a strong position to capitalize on the ongoing digital transformation and the rise of artificial intelligence. The company’s solid financial performance, marked by consistent revenue growth, increased profitability, and a robust balance sheet, underscores its strategic positioning.
With a substantial presence across diverse end markets, the company prioritizes quality and customer value, aligning itself strategically with the global trend toward digitalization.
Comparatively, Broadcom stock currently offers better value relative to its fabless peers, Advanced Micro Devices Inc AMD and NVIDIA Corp NVDA. While Broadcom’s forward P/E is pegged at 22.47, AMD’s is at 45.69 and Nvidia at 30.38. Additionally, Qualcomm Inc QCOM, another fabless semiconductor peer, is at 14.66.
The price trajectory, as represented by growth of a $1000 each invested in each of these stocks, indicates Broadcom and AMD’s close correlation. This suggests that Broadcom’s stock offers better value than AMD stock, with AMD’s Trailing P/E currently standing at a whopping 1,620.82.
However, recent analyst ratings on the stock do not indicate much upside from here. Goldman Sachs on Jan. 19 maintained a Buy rating on the stock with a price target of $1,325, implying an upside of 4.79%. Cantor Fitzgerald, which initiated coverage on the stock on Jan. 23, has a price target of $1,300, implying a 2.81% upside.