AVGO Stock Jumps — JPMorgan Says Investors Should Be ‘Aggressive Buyers’ Of Broadcom At Current Levels

The Wall Street firm’s checks indicate Broadcom and Google’s next-generation 2nm TPU program remains on track.

• JPMorgan highlighted Broadcom’s strengths in advanced packaging, intellectual property and execution.
• The firm stated that recent concerns from the supply chain and other sources have overstated risks.
• Broadcom separately set pricing for its cash tender offers on six series of senior notes, with $2.5-billion cap.

Broadcom Inc.’s (AVGO) AI chip development timeline remains on track, said J.P. Morgan, and added that investors should consider buying the stock aggressively at current levels.

Amid these comments, shares of AVGO jumped over 6% during intraday trading on Wednesday before trimming gains to close 4.3% higher.

In after-hours trading, AVGO stock extended its gains, rising an additional 1.11% at the time of writing. 

JPMorgan Sees Market Underestimating Broadcom’s Dominance

JPMorgan believes the market continues to underestimate Broadcom’s “significant dominance” in advanced packaging design, cadence of new designs, intellectual property portfolio and track record of execution, according to TheFly.

The firm said that contrary to “recent noise from sell-siders,” the Asia supply chain, and news outlets, its research indicates Broadcom and Alphabet Inc.’s (GOOG) Google have not delayed or canceled their next-gen Google tensor processing unit v9 2nm program.

The firm reiterated an Overweight rating on Broadcom with a $580 price target, which implies a 38% upside over the stock’s last closing price. JPMorgan also urged investors to be “aggressive buyers at current levels.”

The AVGO stock has fallen nearly 7% in the past month amid reports that the rollout of its custom tensor processing unit AI chips, developed with Google, may be delayed, according to a CNBC report. The TPU v9 chips are designed to support the training and operation of large generative AI models.

AVGO Stock: Wall Street Remains Broadly Bullish

JPMorgan’s call aligns with broader Wall Street sentiment. According to data from Koyfin, 44 of the 48 analysts covering AVGO rate it ‘Buy’ or ‘Strong Buy,’ while four rate it ‘Hold.’

The 12-month average target on the stock is $419.94, representing a potential upside of about 28% from the last close.

AVGO Stock Stock: What Retail Says

Stocktwits sentiment on AVGO was ‘bearish,’ while message volume was ‘low.’ Year-to-date AVGO shares have gained nearly 13%. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.<