Broadcom
Broadcom
AVGO
$5.59
2.43%
44%
IBD Stock Analysis
- Stock with support at 21-day after big earnings gap
- AVGO trying to break short downtrend near 237
- Volume running above average
Industry Group Ranking
Emerging Pattern
Double Bottom
* Not real-time data. All data shown was captured at
11:25AM EST on
01/16/2025.
Broadcom (AVGO) is the IBD Stock Of The Day as shares of the fabless chipmaker and infrastructure software provider show strength in a turbulent market.
On the stock market today, Broadcom stock rose a fraction to close at 229.41. Earlier in the session, it jumped as much as 4.6% to 238.60 after its contract chipmaker Taiwan Semiconductor Manufacturing (TSM) delivered a beat-and-raise quarterly report.
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AVGO stock is trying to break a short downtrend line near 237, according to IBD analysis. In a positive sign, it has found support at its 21-day exponential moving average.
On Dec. 13, Broadcom stock broke out of a double-bottom base at a buy point of 185.05 after the company delivered roughly in-line results for its fiscal fourth quarter. Its outlook also matched analyst estimates.
On Wednesday, investment bank Oppenheimer named Broadcom stock as one of its top chip stocks for 2025. Other “top picks” included Marvell Technology (MRVL), Monolithic Power Systems (MPWR) and Nvidia (NVDA).
Oppenheimer analyst Rick Schafer said his four top stock picks are all levered to the artificial intelligence megatrend.
“AI-related semi stocks led the SOX (Philadelphia semiconductor index) in ’23 and ’24,” Schafer said in a client note. “We see ’25 as more of the same as CSP (cloud service provider) capex continues to rise and enterprises work to monetize their AI strategies.”
Broadcom makes custom AI server chips for Alphabet‘s (GOOGL) Google, Facebook parent Meta Platforms (META) and TikTok owner ByteDance. It also is designing AI inference chips for ChatGPT creator OpenAI and Apple (AAPL), Schafer said. Revenue from those two new clients should contribute to its top line in 2026, he said.
Broadcom Stock Is On Four IBD Lists
“AVGO is the largest custom ASIC (application-specific integrated circuit) design house and second-largest volume producer of AI accelerators behind Nvidia,” Schafer said.
Broadcom also benefits from sales of networking chips for AI systems, he said.
On Monday, Jefferies analyst Blayne Curtis named Broadcom stock as his “top pick” among semiconductor stocks for 2025. In a client note, Curtis said he likes AVGO stock because of the “rising demand for custom silicon.”
Broadcom stock is on four IBD lists: IBD 50, Big Cap 20, SwingTrader and Tech Leaders.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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