Broadcom Stock Rises Amid AI Boom and Analyst Coverage

Broadcom stock is rising due to gains in the broader market and Nvidia’s record $4 trillion valuation. Analysts look to Nvidia’s performance for insights into Broadcom’s outlook. Additionally, a recent price target of $330 per share by KeyBanc may be supporting gains for Broadcom stock.

Broadcom Inc. (AVGO) stock is experiencing a significant rise today, driven by broader market gains and Nvidia Corporation’s (NVDA) record $4 trillion valuation. The company’s share price was up by 2.2% as of 12:40 p.m. ET, reaching a high of 2.8% earlier in the day [1].

The broader market’s upward trend, coupled with Nvidia’s milestone, is contributing to Broadcom’s stock performance. Nvidia’s record valuation underscores the growing importance of artificial intelligence (AI) in the tech industry, a sector where Broadcom plays a crucial role. The company’s position in networking hardware and software has positioned it to benefit from the AI data center wave [1].

Analyst coverage is also supporting Broadcom’s stock price. KeyBanc recently raised its price target for Broadcom stock to $330 per share, up from $315, citing strong demand in AI product categories [1]. This bullish analyst sentiment may be further boosting investor confidence in Broadcom’s prospects.

Broadcom’s AI-driven growth is evident in its Q2 FY25 results, with AI revenue surging 46% YoY to $4.4 billion. The company’s AI networking revenue jumped 70% YoY, now making up 40% of total AI-related sales [2]. This momentum is backed by demand from leading hyperscalers deploying Broadcom’s custom AI accelerators and networking silicon.

Looking ahead, Broadcom projects its AI Serviceable Addressable Market (SAM) to reach $60B–$90B by FY27, with expected deployments of over 1 million custom accelerator clusters. The company’s AI strategy centers on its custom AI XPU business, which is firing on all cylinders and is on track to tape-out first-generation AI XPU products this year [3].

Despite the high valuation, Broadcom’s earnings growth outpaces Nvidia’s. Adjusted EPS is expected to climb from $4.87 in FY24 to $15.44 in FY29, compared to Nvidia’s $2.99 to $7.31 over the same period [2]. This strong earnings growth supports the stock’s premium valuation.

In summary, Broadcom stock is rising due to broader market gains, Nvidia’s record $4 trillion valuation, and analyst bullishness. The company’s strong AI-driven growth and leadership in networking hardware and software position it well for continued success.

References:

[1] https://www.fool.com/investing/2025/07/09/why-broadcom-stock-is-rising-today/

[2] https://www.tradingnews.com/news/broadcom-nasdaq-avgo-rockets-on-4-point-4-billion-ai-revenue

[3] https://www.benzinga.com/markets/tech/25/07/46315651/nvidia-broadcom-avgo-stock-ai