Broadcom Inc. shares surged to new records and led gainers on the S&P 500 index Friday following positive Wall Street commentary, helped along by Apple Inc. earnings, ahead of the chip maker’s earnings on Thursday.
Shares of Broadcom AVGO,
Broadcom announced a deal with Apple Inc. AAPL,
After Apple’s recent earnings showed a surprise jump in iPhone sales, Rolland said reduced iPhone checks “present a modest risk to guidance,” but said the “multiyear, multibillion-dollar extension with Apple for RF/Wi-Fi components should mitigate Apple insourcing risk, solidifying this longer-term relationship.”
On Friday, Oppenheimer analyst Rick Schafer, who has an outperform rating and a $800 price target, said he sees second half sales led by mobile (Apple) and networking, with a boost from artificial intelligence.
“Broadcom’s Tomahawk, Trident and Jericho switches/routers benefit from generative AI adoption as connectivity needs to keep pace w/advances in compute,” Schafer said in a note.