Broadcom Inc. (NASDAQ:AVGO) stock is moving higher on Monday on continued momentum from last week after the company reported earnings for the fourth-quarter.
The Details: Broadcom shares rose last week after the company reported earnings and continue to gain momentum into Monday morning. The company's earnings report included adjusted earnings per share of $1.42, beating analyst estimates of $1.38.
Broadcom reported quarterly revenue of $14.05 billion, missing analyst estimates of $14.09 billion, but representing a 51% increase compared to the prior year period.
"Broadcom's fiscal year 2024 revenue grew 44% year-over-year to a record $51.6 billion, as infrastructure software revenue grew to $21.5 billion, on the successful integration of VMware," said Hock Tan, President and CEO of Broadcom Inc.
"Semiconductor revenue was a record $30.1 billion driven by AI revenue of $12.2 billion. AI revenue which grew 220 percent year-on-year was driven by our leading AI XPUs and Ethernet networking portfolio."
Broadcom issued guidance for 2025 fiscal-year first-quarter. It sees revenue of about $14.6 billion, versus analyst estimates of $14.61 billion.
Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments.
- Deutsche Bank analyst Ross Seymore maintained a Buy rating on Broadcom and raised its price target from $190 to $240.
- Piper Sandler analyst Harsh Kumar maintained an Overweight rating on Broadcom and raised its price target from $200 to $250.
- Baird analyst Tristan Gerra maintained an Outperform rating on Broadcom and raised its price target from $195 to $210.
- Evercore ISI Group analyst Mark Lipacis maintained an Outperform rating on Broadcom and raised its price target from $201 to $250.
- B of A Securities analyst Vivek Arya maintained a Buy rating on Broadcom and raised its price target from $215 to $250.
AVGO Price Action: At the time of writing, Broadcom stock is trading 6.99% higher at $240.52, according to data from Benzinga Pro.
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