Broadcom Stock Just Scored a New Bullish Rating. Here's Why.
Broadcom's AVGO stock rose after BMO Capital Markets upgraded the semiconductor company to an Outperform rating. Analyst Harsh Kumar predicts AVGO could reach $455, a potential gain of over 25% from current levels. The rating comes as Broadcom's shares have fallen about 25% from their year-to-date high amid a tech market downturn.
Kumar sees AI as a key driver, praising Broadcom's leading position in custom ASICs and networking infrastructure. The analyst also highlights a recent supply agreement with Apple, which could contribute to long-term stability and upside for AVGO. While BMO maintains a 24% SELL opinion, Kumar views the recent price dip as a buying opportunity at a premium valuation.
Broadcom's fiscal 2027 guidance exceeds $100 billion in AI revenue, and the company pays a dividend yield of 0.71%.
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