Looking ahead | Will Broadcom ignite the AI frenzy? The AI market is about to boom!
The market is expecting Broadcom's earnings report to once again stimulate AI concept stocks.
On March 1st, Dell Technologies' earnings report revealed an incredibly strong market demand for AI products, igniting an AI frenzy. Dell Technologies surged by 31.6% on the same day, leading Nvidia, AMD, SMCI, and others to break new highs.
After hours on March 7th, Broadcom, which is even more "AI" than Dell Technologies, will announce its earnings report. As a provider of AI underlying hardware, Broadcom plays a crucial role in building AI hardware infrastructure.
Broadcom's stock price rose by 104% in 2023 and continued to rise by 21% in 2024, while iShares Semiconductor ETF (SOXX) increased by 67% and 19% respectively.
Analyst Predictions
The general estimate on Wall Street is that Broadcom's revenue for this quarter is $12.3 billion, with an adjusted earnings per share of $11.11 (compared to $11.8 billion in revenue and $10.40 adjusted earnings per share in the previous quarter).
Morgan Stanley analyst Harlan Sur reiterated his overweight rating and maintained a target price of $1550.
Harlan Sur believes that Broadcom is a leader in wireless, data center networking, AI/deep learning ASIC, storage, and infrastructure chip/hardware/software sectors.
Harlan Sur estimates that Broadcom will generate $8 to $9 billion in AI chip revenue in the 2024 fiscal year.
Price Targets by Major Banks
Since 2024, analysts have generally been bullish on Broadcom, with a consensus similar to high-flying stocks like Nvidia.
