Source: Wall Street News
Driven by Wall Street's upward revision of the Target Price and trend trading, Broadcom surged again on Monday. Despite the lack of support from NVIDIA, the Nasdaq Composite Index still reached a historic high on that day. On Monday, other popular Semiconductor Stocks also performed well: Micron Technology rose over 5% ahead of its upcoming quarterly Earnings Reports, and at one point surged over 8% during the session, while Marvell Technology increased by 3.3%.
After breaking through a Market Cap of 1 trillion USD and recording a 24% maximum single-day increase last Friday,$Broadcom (AVGO.US)$it surged over 11% again on Monday, closing at 250 USD, hitting an intraday historical high of 251.88 USD, spurred by Wall Street's upward revision of the Target Price.
In contrast, on Monday$NVIDIA (NVDA.US)$the stock price fell, dipping nearly 3% intraday and closing down nearly 1.7%, finishing at 132 USD. Since December, NVIDIA's stock price has decreased by about 4.5%, falling over 11% from last month’s closing high of 148.88 USD, officially entering the Range of correction. It is generally believed that a stock price drop of 10% or more from a historical closing high constitutes a correction.
Looking at the performance this year, NVIDIA's stock price has increased approximately 165% year-to-date, while Broadcom's stock price has risen about 120% this year, both significantly outperforming the US Large Cap market, with the Nasdaq Index up about 34% this year.
This round of Broadcom's stock price surge was driven by the company's better-than-expected earnings reports released on Thursday evening and an optimistic outlook for the first quarter. Benefiting from the wave of generative AI, Broadcom's annual AI-related revenue surged 220% year-on-year, reaching 12.2 billion dollars.
Broadcom refers to its custom AI accelerator as XPU, which is different from the GPUs sold by NVIDIA. Broadcom announced that the shipment of XPUs to three hyper-scale customers doubled this quarter. Although Broadcom has not disclosed the customer names, analysts believe these three companies are Meta, Google's parent company Alphabet, and TikTok's parent company ByteDance.
Wall Street Insights analysis points out, from NVIDIA to Broadcom, the AI Industry is experiencing a "paradigm shift." As AI large models transition from the pre-training phase to the logical reasoning phase, application-specific integrated circuits (ASICs) may gradually replace graphics processing units (GPUs) as the favored chips among major AI companies. Analysts suggest that if Broadcom's CEO's predictions about the ASIC market are accurate, Broadcom's AI business related to ASICs is expected to achieve annual growth of doubling over the next three years.
Here are the latest views from Wall Street analysts:
Goldman Sachs recommends Buy for Broadcom stocks and raises the 12-month Target Price from $190 to $240, citing new major customers for custom chip products and the management's excellent execution after completing the $61 billion acquisition of VMware last year. "We are more confident in the company's future revenue and profit growth prospects."
Barclays raises Broadcom's Target Price from $200 to $205.
Truist raised Broadcom's Target Price from $245 to $260. Truist pointed out that building infrastructure requires NVIDIA and its chips, but the market is also expressing the view that other companies can benefit from this as well. There have been several rotations among the seven sisters this year.
Bokeh Capital Partners stated that Broadcom's remarks last week might prompt trend investors to start focusing on the company, looking for symbols with faster growth. Trend investing boosted the stock's performance, believing it will not lose momentum in the short term, but the nature of trend investing is always to seek better-performing symbols.
Media analysis indicates that NVIDIA's recent poor performance may suggest that Wall Street is taking profits after another stellar year. There are some concerns for NVIDIA. Although the overall market is hitting new highs, NVIDIA has lagged. If this trend continues, it could be a warning sign. Industry insiders point out that the range between $125 and $130 is a key testing range for NVIDIA's stock price and the overall market.
Despite lacking the support from NVIDIA, on Monday$Nasdaq Composite Index (.IXIC.US)$it still reached a historic high.
On Monday, some other Semiconductors stocks also performed well.$Micron Technology (MU.US)$In anticipation of the upcoming quarterly Earnings Reports, it rose over 5%, and at one point during the session, it surged over 8%.$Marvell Technology (MRVL.US)$ Increased by 3.3%, $Lam Research (LRCX.US)$ Increased by over 2%.
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编辑/jayden
