On a generally downbeat Tuesday for the stock market, chipmaker Broadcom (AVGO 13.60%) managed to eke out a gain. The company's share price crawled 0.3% higher, due in no small part to an analyst price target hike, against the 0.7% decline of the S&P 500 index that trading session.
Broadly bullish
Well before market open, prognosticator C.J. Muse of Cantor Fitzgerald made a double-digit raise to his Broadcom target. The new level is $350 per share, well up from the preceding $300. In making the change, Muse left his overweight (read: buy) recommendation unchanged. Not only that, he also maintained Broadcom as one of his company's top stock picks.
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According to reports, the analyst believes that the company's custom silicon unit will power its growth in the short- to mid-term. Broadcom is a major supplier of custom chips for advanced functionalities, specifically artificial intelligence (AI).
Specifically, Muse pointed to the company's excellent opportunities to supply next-generation solutions to ambitious tech powerhouses Alphabet, the parent of Google, and Facebook/Instagram owner Meta Platforms. On top of that, the pundit also believes that the company's other division, infrastructure software, will bounce back in the very near future.
Double-digit improvements expected
Muse isn't the only professional Broadcom-watcher expecting higher performance from the company. On average, according to data compiled by Yahoo! Finance, analysts like him are expecting a more than 21% improvement in revenue (to nearly $63 billion) in the current fiscal year over the previous one. Better, they're modeling a 37% rise in per-share net income to $6.67.
