Broadcom Stock Dip: EPS Expected to Grow 70% Over Next Two Years
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Market Value Surge: Since the launch of ChatGPT, Nvidia's market value has skyrocketed from $350 billion to $4.5 trillion, establishing itself as the most valuable company globally, highlighting the immense potential and demand in the AI sector.
- Broadcom's Market Outlook: Among 48 analysts, 46 rate Broadcom as a buy, reflecting strong market confidence in its ability to benefit from AI infrastructure spending, which is expected to continue growing.
- Optimistic Earnings Forecast: Broadcom is projected to see its earnings per share rise nearly 70% by fiscal 2028 compared to fiscal 2026, indicating that ongoing investments in AI will enhance its profitability.
- Investment Timing: Despite a 13% drop in Broadcom's stock over the past month, analysts view this as a buying opportunity, with expectations that its price-to-earnings ratio will rebound to mid-50s, potentially pushing the stock price above $900.
Analyst Views on AVGO
Wall Street analysts forecast AVGO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AVGO is 398.73 USD with a low forecast of 300.00 USD and a high forecast of 480.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
30 Analyst Rating
28 Buy
2 Hold
0 Sell
Strong Buy
Current: 352.210
Low
300.00
Averages
398.73
High
480.00
Current: 352.210
Low
300.00
Averages
398.73
High
480.00
About AVGO
Broadcom Inc. is a global technology firm that designs, develops, and supplies a range of semiconductors, enterprise software and security solutions. The Company operates through two segments: semiconductor solutions and infrastructure software. Its semiconductor solutions segment includes all of its product lines and intellectual property (IP) licensing. It provides a variety of radio frequency semiconductor devices, wireless connectivity solutions, custom touch controllers, and inductive charging solutions for mobile applications. Its infrastructure software segment includes its private and hybrid cloud, application development and delivery, software-defined edge, application networking and security, mainframe, distributed and cybersecurity solutions, and its FC SAN business. It provides a portfolio of software solutions that enable customers to plan, develop, automate, manage and secure applications across mainframe, distributed, mobile and cloud platforms.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
