Shares of Broadcom (NASDAQ: AVGO) were up 6.1% as of 3 p.m. ET Friday following a bullish analyst note from Goldman Sachs on the semiconductor products company.

In a note to clients this morning, Goldman analyst Toshiya Hari reinstated coverage on Broadcom with a buy rating and a 12-month price target of $1,325 -- a 16% premium from yesterday's close.

To justify his bullishness, Hari pointed to double-digit percent growth in Broadcom's products related to generative artificial intelligence (AI), including high-speed networking and custom compute solutions. Hari also argued that Broadcom is poised to benefit from a cyclical recovery in its core semiconductor segment as enterprise spending rises in the coming quarters. Finally, he suggested that Broadcom has yet to realize significant operating leverage and synergies following its acquisition of VMware, which closed in November 2023.

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Source Fool.com