Broadcom shares have risen significantly since falling to $128.64 on August 05, 2024. As of writing, the share price was trading at 159.55. The company’s business focus on the AI market has driven the improvement in its shares.
The company supplies AI connectivity and networking solutions to businesses, and its stock price has dramatically benefited from the rally in AI stocks. Broadcom’s Q2 results were impressive as the company surpassed analysts’ expectations. The company is also expected to report positive earnings on September 05, 2024.
Analysts expect the company to continue improving its price-to-equity (P/E) multiple as its stock price rallies. The (NASDAQ: AVGO) shares have pulled back this week since hitting a high of $172.53 on Tuesday. The pullback was expected, given the significant rally in AVGO stock from its August lows.
Traders interested in the company might find that now is a great time to buy ahead of the firm’s earnings release, which could trigger another rally. Broadcom is also attractive over a longer-term timeframe due to the rapid adoption of AI by most businesses that need its products to function. Broadcom’s Q2 results show earnings per share (EPS) of $10.96, beating market expectations by $0.12. The firm’s revenues were $12.49B, a 43% increase compared to Q2 2023.
This post was last modified on Aug 27, 2024, 15:48 BST 15:48