Broadcom Corporation (NASDAQ:AVGO) shares have more than doubled in value so far for 2023 and analysts believe it has further to go as artificial intelligence (AI) plays an increasing role in its sales strategy.
DealHub noted that the semiconductor solutions provider stands out for discussing AI's role in sales more than any other.
A study by DealHub analyzed transcripts of companies’ earnings calls to determine the ranking of the top 10 companies where an AI-related phrase was mentioned in the context of the sale most often
Broadcom led the rankings in its recent 4Q earnings call.
The company reported revenue and earnings that beat analysts’ expectations, and also guided for 2024 revenue that was above consensus, after releasing a new chip in April this year – the Jericho3-AI – which wires supercomputers together for AI work.
Bank of America is bullish on the stock, saying Broadcom’s AI-related sales are expected to continue accelerating in what is the early stages of a multi-$100 billion AI data center opportunity.
Cost synergies from its $61 million acquisition of VMWare are also expected to lend support.
Analysts at the bank have reiterated their ‘Buy’ rating on Broadcom stock while raising their price objective to $1,250 from $1,200.
Citi also sees the potential, citing the company's core business and the advantages from the purchase of VMWare for its ‘Buy’ rating as it resumed coverage of Broadcom.
The company’s shares were up 1.6% at $1,136.52 by midday in New York on Friday, taking year-to-date gains to 105%.