Broadcom’s Stock Soars on Strong Q2 Performance and Plans for Stock Split

Broadcom (AVGO) saw a significant surge in its stock price following a robust earnings report and the announcement of an upcoming 10-for-1 stock split. This positive news led to at least 19 Wall Street firms increasing their price targets for Broadcom after the company released its quarterly report.

Jordan Klein, a trading desk analyst at Mizuho Securities, noted that Broadcom’s report is likely to drive “fear of missing out” (FOMO) trading in AI hardware stocks. Klein highlighted other companies such as Nvidia (NVDA), Arista Networks (ANET), and Micron Technology (MU) as potential beneficiaries of this trend in a client note.

On Thursday, Broadcom’s stock experienced a 12.3% jump, closing at ,678.99 after reaching a record high of ,735.85 earlier in the session. Meanwhile, Nvidia, Arista, and Micron also saw gains in their stock prices.

Klein emphasized that Broadcom is a key player in the AI space due to its leadership in non-GPU custom AI silicon. He also mentioned the company’s essential high-speed networking products for AI data centers.

In a client note, BofA Securities analyst Vivek Arya designated Broadcom as one of the top two AI picks alongside Nvidia. Arya raised his price target for Broadcom stock to ,000 from ,680 and reiterated his buy rating. The stock split is set to take place on July 15.

Barclays analyst Tom O’Malley praised Broadcom’s fiscal second-quarter report, calling it a “mic drop” moment. He maintained an overweight rating on Broadcom stock and increased his price target to ,000 from ,500.

Jefferies analyst Blayne Curtis expressed confidence in Broadcom’s AI revenue guidance for the full fiscal year, stating that it seems conservative. With AI revenue expected to surpass billion, Broadcom is already halfway to meeting this target due to its .4 billion in AI sales in the first half of the year. Curtis raised his price target for Broadcom stock to ,050 from ,550 while maintaining his buy rating.