Broadcom Stock Outlook and Potential Stock Split
2024 Forecast
Analysts anticipate Broadcom’s earnings per share (EPS) to rise to $47.58 for 2024, up from $42.25 the previous year. Revenue is expected to surge significantly, climbing from $35.8 billion in 2023 to $51.5 billion in 2024, marking a robust 43.7% increase. This growth is attributed to Broadcom’s VMware acquisition and strong demand for networking products and AI solutions.
Among 44 analysts, 28 recommend buying AVGO, with seven suggesting holding and nine rating it as “overweight.” The average target price stands at approximately $1,903.94, or $190.39 post-split.
2025 Outlook
Looking ahead to 2025, projected earnings are estimated at $60.41 per share, reflecting a notable increase from the 2024 estimate. Revenue for 2025 is forecasted to reach $60 billion, continuing the upward trajectory but at a slightly moderated pace compared to 2024.
Long-Term Prospects
Broadcom is well positioned for sustained high-growth performance, driven by its leadership in semiconductors, data centers, and AI. These sectors are anticipated to expand significantly in the coming years. Strategic acquisitions and robust research and development efforts are expected to bolster Broadcom’s competitive edge, though managing potential increased debt from acquisitions remains a concern.
While Broadcom faces competition from industry giants like Nvidia and Qualcomm, the growing demand for chips offers ample opportunities. Continued innovation will be crucial for Broadcom to maintain its market leadership and capitalize on evolving industry trends.
In summary, while past performance doesn’t guarantee future outcomes, Broadcom’s strategic positioning and growth initiatives suggest a promising outlook in the dynamic semiconductor landscape.
