$Broadcom (AVGO.US)$ Last Friday, the stock price surged over 24%, closing at $224.8, with the total market cap exceeding $1 trillion in one fell swoop. As of the time of writing, Broadcom is soaring again, currently up over 8%.

After Broadcom's Market Cap surpassed 1 trillion, there are now 9 companies in the USA that have entered the 'trillion-dollar club', including $Apple (AAPL.US)$ 、 $Microsoft (MSFT.US)$ 、 $NVIDIA (NVDA.US)$ 、 $Amazon (AMZN.US)$ 、 $Alphabet-C (GOOG.US)$ 、 $Meta Platforms (META.US)$ 、 $Tesla (TSLA.US)$ 、 $Broadcom (AVGO.US)$ and $Taiwan Semiconductor (TSM.US)$ 。

Could Broadcom become the first "disruptor" to break NVIDIA's AI monopoly? Wall Street's highest target price reaches 260 dollars!

Large data center operators like Google, Meta, and Apple are choosing to collaborate with Broadcom, Marvell Technology, and other custom AI chip companies to launch AI ASIC chips, primarily to gain greater autonomy in optimization concerning performance, power consumption, cost, scalability, and technological independence. Customized AI ASICs can provide hardware acceleration for specific tasks and perform better in large-scale AI training and inference tasks, boasting higher efficiency and cost-effectiveness compared to general-purpose NVIDIA GPUs.

With its leading position in the AI ASIC market, Broadcom is expected to soon break NVIDIA's monopoly position in the AI chip market. Analyst Jordan Klein from Mizuho pointed out that Wall Street is paying attention to the demand for ASICs from large cloud computing companies like Google, which may be one of the reasons for NVIDIA's stock unexpectedly dropping on Friday. 'In my view, customized AI chips will continue to capture a share from NVIDIA AI GPUs every year, although NVIDIA GPUs still dominate for AI training purposes.'

On Wall Street, investment institutions have significantly raised their target price expectations for Broadcom following the company's earnings release, with the highest target price on Wall Street reaching $260 and a consensus rating of 'Strong Buy,' with no Analyst giving a 'Sell.' Among them:

The financial giant JPMorgan has significantly raised Broadcom's target price from $210 to $250, maintaining a 'Shareholding' rating.

Benchmark has raised the target price significantly from $210 to $255.

KeyBanc has jumped Broadcom's target price from $210 to the highest target price on Wall Street of $260.

Who will be the next member of the 'trillion-dollar market cap club'?

In terms of total Market Cap, the five US companies currently closest to a trillion dollars in total Market Cap are:

$Berkshire Hathaway-B (BRK.B.US)$ : Current Market Cap is $987.421 billion.

$Walmart (WMT.US)$ Current Market Cap is 757.147 billion USD.

$Eli Lilly and Co (LLY.US)$ Current Market Cap is 749.124 billion USD.

$JPMorgan (JPM.US)$ Current Market Cap is 675.513 billion USD.

$Visa (V.US)$ Current Market Cap is 616.809 billion USD.

• Berkshire

Berkshire-B previously reached a market cap of over a trillion, but after the stock price hit a historic high of $491.67 on November 27, it corrected to $457.9 as of last Friday, with a market cap of $987.421 billion.

Berkshire's stock performed strongly in 2024, despite Buffett suspending buybacks and selling off part of his top holdings before the stock surged. The company's Class B shares rose over 28% this year, outperforming the S&P 500 Index, and are expected to achieve the best year since 2021. Buffett actively sold shares of Apple and Bank of America, while Berkshire sold stocks worth up to 133 billion dollars in the first three quarters of 2024. The company halted stock buybacks and its cash reserves exceeded 300 billion dollars.

After Berkshire reported its earnings on November 2, two Institutions released ratings, which are:

Investment bank KBW raised the target price for Berkshire-A from $735,000 to $750,000;

UBS Group lowered the target price for Berkshire-A from $806,724 to $796,021.

If based on the target prices mentioned above, Berkshire's subsequent market cap is expected to exceed a trillion dollars again.

• walmart

Walmart's increase this year exceeds 80%, closing at $94.25 as of last Friday, with a Market Cap of $757.147 billion.

The company announced its Q3 results on November 19 and raised its full-year performance guidance, which includes:

Expected net sales growth of 4.8%-5.1%, previously expected to be 3.75%-4.75%;

Expected adjusted operating profit growth of 8.5%-9.25%, previously expected to be 6.5%-8.0%;

Expected adjusted EPS of $2.42-$2.47, previously expected to be $2.35-$2.43.

After the earnings announcement, BMO Capital Reports' Analyst Kelly Bania wrote in a report: "Walmart's growth in market share in the USA is 75% driven by high-income households, while sales to all income groups are also increasing."

Since December, multiple Institutions have also raised Walmart's Target Price, including:

Tigress Financial raised its Target Price from $86 to $115;

Keybanc raised the Target Price from $96 to $100;

Stifel raised the Target Price from $89 to $94;

Evercore ISI raised the Target Price from $94 to $96.

• Eli Lilly and Co.

Currently, the weight loss drug market is becoming one of the fastest-growing areas in the pharmaceutical industry. The industry forecasts that by 2030, the market size will reach $130 billion.

A recent study released by Eli Lilly and Co showed that its weight loss drug Zepbound performed better in the first head-to-head clinical trial against Novo-Nordisk A/S's Wegovy. In this clinical trial, participants using Zepbound lost an average of 20.2% of their weight over 72 weeks, while those using Novo-Nordisk's Wegovy lost 13.7%. This means that on average, those taking Zepbound lost 50 pounds, while those taking Wegovy lost 33 pounds.

In response, Goldman Sachs stated that this result aligns with market expectations that Zepbound's weight loss effect is significantly superior to competitors. It is believed that Novo-Nordisk and Eli Lilly will control 80% of the weight loss drug market, with a ratio of 40% and 60% between the two.

Mizuho Analyst Jared Holz referred to the competition between Eli Lilly and Novo-Nordisk as an "eternal leapfrog game." He stated that the weight loss effect of Zepbound is consistent with the data reported in previous trials, while the weight loss effect of Wegovy is at the low end of its long-term trial range. This result is more favorable for Eli Lilly to capture more market share in fierce competition.

• jpmorgan

"Buying bank stocks" is becoming an overwhelming consensus among Wall Street strategists for 2025, with key favorable factors including: a strong economy, expectations of Trump easing financial regulations, attractive valuations, and the expansion of investment banking activity due to falling interest rates.

Wells Fargo & Co's Chris Harvey emphasized in a recent report that the pricing in the banking sector is attractive and stated that fund managers "finally need to pay attention to this area." Meanwhile, BMO Capital Markets' Brian Belski wrote in his 2025 outlook that despite the strong growth expectations and attractive valuations, the financial industry remains "extremely unpopular."

The market has started to reflect this optimism, as after Trump's victory announcement, the XLF has risen 6.06% from November 6 to the present, exceeding the S&P 500 Index's 4.64% increase.

"About 7 trillion dollars have flowed into the market from money market funds." Goldman Sachs' senior analyst Alex Blostein stated, "Initially, this may go into fixed income products and might expand to stocks. All these factors seem very favorable for the financial industry in 2025."

And just today, RBC Capital raised the target prices for multiple US bank stocks, including increasing JPMorgan's target price from 230 dollars to 248 dollars. If US bank stocks rise as expected in 2025, JPMorgan could be one of the targeted symbols to watch.

• Visa

Visa hit a new all-time high of 317.42 dollars during intraday trading on December 2, while closing at 314.74 dollars last Friday, again nearing the all-time high.

Haina International Group reaffirmed its bullish stance on Visa last Wednesday, raising its target price from the previous $339 to $375. This analysis was conducted after meetings with Visa's CEO and the investor relations department, where the strategic guidelines for Visa's development of value-added services and new payment processes, particularly in the business sector, were discussed in detail.

Analysts are optimistic about Visa's ongoing "significant bets," especially regarding Visa Direct, dynamic pricing for business transactions, and the innovative application of tokens in what the company refers to as "agentic commerce." These strategic initiatives are part of Visa's broader efforts to enhance its product offerings and maintain a competitive edge in the payment industry.

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Editor/Jeffy