Broadcom Inc. (AVGO) is experiencing a notable uptick in its stock price, driven by a series of positive developments in the company's AI business. The company recently reported a strong fiscal fourth-quarter performance, which included a long-term forecast for its AI segment. Broadcom's CEO, Hock Tan, projected that the addressable market for AI components designed for data centers could reach as much as $90 billion by fiscal 2027. This optimistic outlook has fueled investor enthusiasm, as Broadcom's diverse chip business positions it well to capitalize on the growing demand for AI technology.
Additionally, Broadcom's stock has been buoyed by an analyst upgrade, which has further boosted investor confidence. The company's shares have surged significantly, with a 38% increase over the past two trading days, pushing its market capitalization to nearly $1.2 trillion. This rally is reminiscent of Nvidia's previous success in the AI space, highlighting Broadcom's potential to become a major player in the industry.
Broadcom's stock is currently trading at $255.20, reflecting a 2.08% increase from the previous close of $250.00.