Why Are Broadcom Shares Moving Monday?

Zinger Key Points
  • Broadcom's shares surged after Morgan Stanley reinstated coverage with an Overweight rating and set a price target of $1,658
  • Broadcom is expected to report strong fiscal second-quarter results on June 12.

Broadcom Inc. AVGO shares are trading higher Monday afternoon after Morgan Stanley reinstated coverage with an Overweight rating and set a price target of $1,658.

What To Know: Broadcom, already recognized as a top AI semiconductor supplier by JPMorgan analyst Harlan Sur, is expected to deliver a strong performance in its upcoming fiscal second-quarter earnings report on June 12. The company is likely to report a modest beat, with estimated EPS of $10.80 and estimated revenue of $12.03 billion according to Benzinga Pro.

What Else: Analyst Vivek Arya of BofA Securities also maintained a Buy rating and a price target of $1,680 for Broadcom. Arya expects the company to reiterate its fiscal 2024 sales outlook of around $50 billion, driven by strength in AI despite challenges in its legacy segment.

Related Link: Broadcom Could Report A Modest Beat For Q2, Says Bullish Analyst

Broadcom had previously raised its AI revenue forecast to over $10 billion, and Arya sees potential for an additional $1 billion upside due to custom chip deployments at major tech companies like Alphabet Inc. HTTPSGOOGL)) and Meta Platforms Inc. METAMETA.

AVGO Price Action: Broadcom's shares were up by 2.57% at $1,441.69 according to Benzinga Pro.

See Also: Crude Oil Rises Sharply; ICC Holdings Shares Spike Higher

Image: Dennis Diatel, Shutterstock

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