After posting better-than-expected quarterly results and projecting an optimistic first-quarter outlook, Broadcom Inc. (AVGO, Financial) continued its streak posting an 11.2% gain on Tuesday at the time of writing, raising its market capitalization to $1.2 trillion.
Driven by explosive demand for custom silicon solutions, the semiconductor and infrastructure software company announced a 220% yearly revenue bump from generative artificial intelligence, hitting $12.2 billion. Citing good execution following the $61 billion acquisition of VMware and the addition of sizable consumers for AI-related custom chips, Goldman Sachs raised its 12-month price target on Broadcom to $240 from $190.
Goldman analysts reiterated a buy rating on the stock in a Dec 15 report, offering confidence in the company's forward revenue and earnings growth outlook. The most recent rally by Broadcom highlights investor hope about its place in the rapidly expanding artificial intelligence market and management's effective integration of VMware, which finished last year.
