Broadcom Stock Surges 2.12% on Daiwa Upgrade, Ranks 10th in Trading Volume

On April 2, 2025, Broadcom (AVGO) saw a 2.12% increase in its stock price, marking the second consecutive day of gains with a total increase of 2.78% over the past two days. The trading volume for Broadcom was 32.62 billion, ranking it 10th in the day's trading volume.

Broadcom's stock price surged following an upgrade by Daiwa Securities, a Japanese investment bank. The firm upgraded Broadcom from 'Outperform' to 'Buy,' highlighting the company's strong position in artificial intelligence (AI) as a key driver for its future growth. Analyst Louis Miscioscia cited four main factors contributing to Broadcom's potential: its application-specific integrated circuit (ASIC) business, networking capabilities, the VMware acquisition, and the anticipated rebound in the semiconductor market.

Miscioscia noted that Broadcom's ASIC business has expanded from three core customers to seven, driven by the cost efficiency and power savings of ASIC processors. This has attracted major tech companies like Google, Meta, ByteDance, and OpenAI. Additionally, Broadcom's networking business is poised to benefit from the increasing demand for connectivity in AI factories, leveraging its strong position in Ethernet. The VMware acquisition is expected to continue providing growth, margins, and cash flow.

Despite potential challenges such as tariffs and regulatory changes, Miscioscia believes that Broadcom's sell-off is overdone and that the company is well-positioned for future growth. The analyst raised his rating on Broadcom to 'Buy' but lowered his price target to $225 from $275, reflecting a more cautious outlook on the broader market conditions.