Broadcom Extends Record Run, Goldman Sachs Boosts Confidence

Broadcom Inc. (AVGO) has extended its record-breaking run, with shares surging 9% on Tuesday, December 17, 2024. The semiconductor giant's stock price has been boosted by Goldman Sachs' upgrade to 'higher conviction,' reflecting increased confidence in the company's prospects. This article explores the factors driving Broadcom's recent rally and the role of analyst ratings in its stock performance.

Broadcom's stock has been on a tear, with the company's market capitalization reaching a record $1 trillion. The surge can be attributed to several factors, including the company's strategic expansion into the artificial intelligence (AI) market and its successful partnerships. In the fourth quarter of 2024, Broadcom's AI revenue grew 220% year-over-year to $12.2 billion, driven by its leading AI XPUs and Ethernet networking portfolio.

Goldman Sachs' upgrade to 'higher conviction' has significantly contributed to Broadcom's recent rally. The investment bank raised its price target to $250, indicating a potential upside of 1.13% from the current stock price of $247.51. This positive sentiment is reflected in the increased trading volume, with over 30 million shares traded on the day of the announcement, compared to the average daily volume of around 15 million shares.

Broadcom's strong financial performance and growth prospects in the AI sector have attracted more investors, leading to a surge in demand and a higher stock price. The company's revenue grew 44% year-over-year to a record $51.6 billion in fiscal year 2024, with AI revenue surging 220% to $12.2 billion. Broadcom's strategic partnerships and custom AI chip development with major cloud customers have further solidified its position in the AI market.

Analyst ratings and price targets have played a significant role in Broadcom's recent rally. As of December 16, 2024, the average analyst rating for Broadcom stock is a 'Strong Buy,' with a consensus price target of $218.26, indicating a potential decrease of -11.71% from the current stock price of $247.20. Analysts from firms such as Barclays, JP Morgan, Jefferies, and Morgan Stanley have maintained or raised their price targets, reflecting their confidence in the company's growth prospects.


Broadcom's stock performance has been impressive, with the company's market capitalization reaching a record $1 trillion. The surge in the stock price can be attributed to the company's strategic expansion into the AI market and its successful partnerships. Goldman Sachs' upgrade to 'higher conviction' has further boosted investor confidence in the company's prospects.


Broadcom's revenue and earnings per share (EPS) have grown significantly over the past five years. In fiscal year 2024, the company's revenue reached a record $51.6 billion, with EPS of $4.93. This growth can be attributed to the company's strong performance in the semiconductor and infrastructure software segments, as well as its expanding AI business.

In conclusion, Broadcom's recent rally can be attributed to its strategic expansion into the AI market, successful partnerships, and positive analyst ratings. The company's strong financial performance and growth prospects have attracted more investors, leading to a surge in demand and a higher stock price. As technology continues to evolve and the AI market expands, Broadcom is well-positioned to capitalize on these trends and continue its record-breaking run.