Missed Out on Broadcom? Buy This Artificial Intelligence (AI) Semiconductor Stock Before It Skyrockets
Shares of (NASDAQ: AVGO) delivered impressive gains of 82% in the past year thanks to the company's solid position in the market for custom artificial intelligence (AI) chips, which led to robust growth in the company's semiconductor business. It also helped that Broadcom was named the second-most important AI chip company after Nvidia by JPMorgan analyst Harlan Sur.
That designation is not surprising, as the company is the dominant player in the market for application-specific integrated circuits (ASICs) with an estimated share of 55% to 60%. More importantly, the company's dominance in this area is paying off nicely.
Broadcom's strong rally in the past year is the reason why it now trades at an expensive 17 times sales and 70 times trailing earnings. This expensive valuation may deter investors from buying more Broadcom stock and have them looking for alternatives.
Source Fool.com
Broadcom Ltd. Stock
The stock is one of the favorites of our community with 66 Buy predictions and 1 Sell predictions.
Based on the current price of 123.58 € the target price of 1382 € shows a potential of 1018.3% for Broadcom Ltd. which would more than double the current price.
