Broadcom $AVGO stock is continuing in a powerful uptrend channelUptrend and downtrend channel patterns are technical analysis tools used to identify potential future price movements. They are formed by two parallel lines on a chart and can be u... as of March 4, 2023. The company recently reported EPS and revenueThe income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th... beats which is helping to power the stock higher. Broadcom could make a run back to test its December 2021 high at $677.76.
Broadcom is a global technology leader in semiconductor solutions for wired and wireless communications. Broadcom designs, develops, and supplies a wide range of semiconductor and infrastructure software solutions. These solutions are used by customers to connect devices and networks, and to power digital media services, cloud computing, internet of things, and other connected applications. Broadcom’s products include Bluetooth, Wi-Fi, cellular, Ethernet, and other communications products. Broadcom’s solutions are used in a wide range of industries including consumer electronics, home networking, automotive, enterprise networking, and mobile devices.
On March 2, 2023, Broadcom reported Q1 adjusted EPS of $10.33 versus the consensus estimate of $10.10. The company reported Q1 revenue of $8.92B versus the consensus estimate of $8.9B.
“Broadcom’s first quarter performance reflects continued strength in infrastructure demand across all our end markets,” said Hock Tan, President and CEO of Broadcom Inc. “Looking ahead, we are confident our growth will be driven by sustained leadership in next generation technologies across all of our core markets, and strong partnerships with our customers.”
“Consolidated revenue grew 16% year-over-year to $8.9 billion and adjusted EBITDA margin increased year-over-year to 64%,” said Kirsten Spears, CFO of Broadcom Inc. “We generated $3.9 billion in free cash flowThe cash flow statement provides a detailed overview of the cash inflows and outflows of a company over a specified period of time. It includes cash received from operations, inves..., representing a 16% increase year-over-year, and expect even stronger free cash flow in the second quarter.”
Broadcom price target raised at BofA
Following the company’s Q1 report and promising Q2 sales outlook, BofA increased the price target on Broadcom to $725 from $680 on March 3, 2023, and kept a Buy rating on the shares. BofA, which believes that Broadcom offers perhaps the most compellingly valued exposure to the rapidly expanding generative AI market, noted that management provided new disclosure of generative AI exposure, with high-speed cloud switch sales expected to increase four times to $800M year over year and accelerator expected to grow 50% year over year to $3B.
Broadcom price target raised at KeyBanc
Broadcom’s price target was increased by KeyBanc analyst John Vinh to $720 from $700 on March 3, 2023, while maintaining an Overweight rating for the stock. According to the analyst’s research note to investors, the company delivered strong results and raised its guidance due to strong spending from hyperscale providers and infrastructure service providers, as well as stable enterprise demand.