Are you looking to invest in a company with potential for significant growth in the coming years? Look no further than Broadcom. According to Bank of America analyst Vivek Arya, Broadcom is set to see its sales growth double thanks to the artificial intelligence craze.
Arya recently raised his price target for Broadcom by $150 to $2,150, maintaining his buy rating and top-pick designation for the stock. This new target represents a potential 30% increase from the stock’s current levels. Arya predicts that Broadcom’s sales growth will double to a compound annual rate of around 13% between the 2024 and 2026 fiscal years, driven by a 24% compound annual growth rate in the AI-connected silicon and VMWare businesses.
What sets Broadcom apart, according to Arya, is its diverse growth drivers, strong management team, and track record of capital appreciation and dividend growth. He believes that these factors justify a premium multiple for the stock. Arya’s price target is based on a multiple of 35 times earnings in the 2025 calendar year, which falls within the range set by industry peers.
However, Arya cautions that any shifts in sentiment or fundamentals around AI could impact Broadcom’s performance. The stock has already seen significant gains this year, outperforming both the iShares Semiconductor ETF (SOXX) and the tech-heavy Nasdaq Composite.
At Extreme Investor Network, we believe that investing in companies like Broadcom with strong growth potential can enhance your portfolio and lead to long-term success. Stay ahead of the curve and capitalize on the AI craze by considering Broadcom for your investment strategy. Subscribe to our newsletter for more insights and recommendations on how to maximize your investment opportunities.