Why Broadcom Stock Soared Today
(NASDAQ: AVGO) stock rose 6.3% in Thursday's trading. Investors were sunny on the stock after a supplier of memory chips published quarterly results that point to demand remaining strong for artificial intelligence (AI) hardware. The stock is also getting a boost from bullish momentum for the broader market.
Before the market opened today, SK Hynix published its first-quarter results, and the information could be great news for Broadcom. SK Hynix is South Korea-based designer of memory chips, and it's recent Q1 report suggests strong demand in the AI hardware space.
SK Hynix reported substantial sales and earnings beats driven by strong demand for its high-bandwidth-memory (HBM) solutions. Crucially, HBM chips are used by Nvidia and other AI processor designers. Hynix's results seem to suggest that Nvidia has continued to spend heavily on HBM chips. In turn, this makes it more likely that large data center customers have continued to spend heavily on the kind of networking hardware technologies and services that Broadcom provides.
Source Fool.com
Broadcom Ltd. Stock
The stock is an absolute favorite of our community with 91 Buy predictions and no Sell predictions.
As a result the target price of 308 € shows a slightly positive potential of 3.18% compared to the current price of 298.5 € for Broadcom Ltd..
