Broadcom Inc. (AVGO) saw a significant surge in its stock price on December 16, 2024, closing at $250.00, up 11.21% from the previous close of $224.80. The stock opened at $231.79 and reached an intraday high of $251.87, with an extraordinary trading volume of 107,659,258 shares, over four times its average. This rally was fueled by a series of analyst upgrades and increased price targets, with institutions like Barclays and Piper Sandler raising their targets to $205 and $250, respectively. The bullish sentiment was driven by Broadcom's strong position in the AI chip market, highlighted by a 220% y/y growth in AI revenue and optimistic projections of $60 billion to $90 billion in AI-related revenue by 2027.
The momentum was further supported by Broadcom's recent earnings report, which exceeded expectations with a 51% y/y revenue increase, and the successful integration of VMware, enhancing its financial performance. Analysts have compared Broadcom's rise to Nvidia's, dubbing it a "Nvidia moment," as the company capitalizes on the growing demand for AI infrastructure. Broadcom's strategic focus on custom AI ASICs and its robust guidance for future growth have positioned it as a top pick in the semiconductor industry, with its market cap surpassing $1 trillion.