Broadcom Shares Hit All-Time High After Analyst Upgrade and AI Chip Optimism
Jun 24, 2025
Broadcom's stock reached new all-time highs this week following a series of positive developments for the semiconductor company. HSBC upgraded Broadcom to a 'buy' rating, citing improving prospects for its custom chips, especially those related to artificial intelligence (AI). Analysts believe Broadcom's revenues from these AI chips will exceed market expectations.
Broadcom recently reported strong earnings, with notable margin growth and successful integration of its VMWare acquisition. Many analysts see the company as undervalued, even when considering conservative growth estimates. Some have set a 12-month price target well above the current trading price.
The broader surge in chip stocks, including companies like AMD, was also supported by market optimism after news of a cease-fire agreement in the Middle East. Investors are also attracted to Broadcom's solid financial position, active innovation, and potential to benefit from fast-growing demand for AI technology.
Why is Broadcom's stock price rising?
The stock is up due to a positive analyst upgrade, strong recent earnings, and expectations that demand for AI-related chips will boost its revenues.
What is the significance of the VMWare integration?
Broadcom’s successful integration of VMWare has strengthened its business and contributed to financial growth.
How does AI affect Broadcom's business?
AI technology requires powerful chips, and Broadcom makes some of the custom chips that power AI systems, which is expected to drive future growth.
Sources
Broadcom: The Case For $330+
Seeking Alpha
Seeking Alpha
Broadcom delivered strong earnings, impressive margin expansion, and successful VMWare integration, reinforcing my bullish outlook and confidence in management. Valuation remains attractive with significant upside; even conservative growth scenarios suggest the stock is undervalued by 21-34%. Broadc...
Buy Broadcom Stock, HSBC Says. Its AI Chip Prospects Are Improving.
Barrons
Barrons
Broadcom stock is an attractive buying opportunity, even after its rally this year, according to HSBC.
Broadcom, AMD Lead Chip Stocks Rally Tuesday
Investopedia
Investopedia
Shares of Advanced Micro Devices (AMD), Broadcom (AVGO), and other semiconductor companies surged Tuesday, amid broader market gains as investors welcomed news of a cease-fire agreement between Israel and Iran.
FOMO: AVGO All-Time Highs
HSBC upgraded Broadcom (AVGO) to a buy from a hold rating. Diane King Hall discusses the analyst call that AVGO's custom chips revenue will beat market expectations.
Why Broadcom Was Moving Higher Today
The Motley Fool
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Shares of Broadcom (AVGO 3.20%) rallied 4.2% on Tuesday, as of 1 p.m. ET.
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