Source: Barron Chinese
Author: Mackenzie Tattanani

Headquartered in California $Broadcom (AVGO.US)$ The main business is ASIC (Special Purpose Integrated Circuit), and the company's customers use custom ASIC chips to power artificial intelligence.

Broadcom has attracted investors mainly as a semiconductor manufacturer. At the same time, it is not a pure artificial intelligence stock. The company's business also includes enterprise software and security solutions. “Semiconductor solutions” and “infrastructure software” are Broadcom's two major divisions.

Broadcom recently received a series of benefits. On Monday (12/23), UBS (UBS) analyst Timothy Arcuri (Timothy Arcuri) raised Broadcom's target price from $220 to $270 while maintaining an “overweight” rating.

Alcuri isn't the only analyst bullish on Broadcom. On Friday (December 20), Morgan Stanley (MORGAN STANLEY) analyst Joseph Moore (Joseph Moore) added Broadcom to his “Best Investments in 2025” list. Prior to that, Moore had advised investors to “maintain a high level of exposure to artificial intelligence and data center companies.”

On Tuesday (December 24), Broadcom (AVGO) closed up 3.15% to $239.68. Broadcom has more than doubled this year, and is expected to be the best performing year on record.

Broadcom's rise this year has not been easy. At the beginning of this year, Broadcom's stock price fluctuated greatly. The stock price dropped sharply in March. Although the first-quarter earnings report announced at the time exceeded market expectations, it did not leave a deep impression on investors.

However, after announcing a stronger second-quarter earnings report and announcing a split plan to split 1 share into 10 shares starting July 15, Broadcom's stock price hit a historic intraday high in June. In August, the semiconductor sector$NVIDIA (NVDA.US)$It was sold off before the financial report was announced. Broadcom was not spared, and the stock price fell sharply.

On December 12, Broadcom announced strong results for the fourth quarter, while providing performance guidelines that exceeded expectations.

On December 13, Broadcom joined the “Trillion Dollar Club” and its market capitalization broke the $1 trillion mark for the first time. According to Dow Jones market data, as measured by market capitalization, Broadcom is the 8th largest listed company in the US and the 9th largest listed company in the world.

Broadcom also gave shareholders a New Year's gift: a dividend increase. The company raised its quarterly dividend to 59 cents, which is 11% higher than the last 53 cent dividend paid on December 31 last year.

Edit/Rocky