Bank of America says Broadcom's sales growth to double, raises price target even higher
How much have Broadcom shares increased this year?
Broadcom shares have surged over 50% this year, driven by the artificial intelligence boom and its acquisition of VMware. The company's strong financial performance, strategic decisions, and leadership in the AI hardware market have made it an attractive option for investors seeking exposure to the AI industry.
How does Broadcom's performance compare to the iShares Semiconductor ETF and Nasdaq Composite?
Broadcom's stock has outperformed both the iShares Semiconductor ETF (SOXX) and the tech-heavy Nasdaq Composite, with a gain of over 45% this year. The company's sales growth is expected to double due to the AI craze, driving further growth in the stock.
What percentage of Broadcom's total sales could the AI and VMWare businesses soon represent?
Bank of America analyst Vivek Arya estimates that Broadcom's AI and VMWare businesses could soon account for more than half of the company's total sales, driven by a 24% compound annual growth rate in these units. This growth is expected to propel Broadcom's sales growth to double, reaching a compound annual rate of around 13% between the 2024 and 2026 fiscal years.