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,
rallied 12% to a record intraday high of $814.98, and finished up 11.5% at a record high of $812.73, with the previous high being this past Thursday’s $728.80. Broadcom shares also logged their best one-day performance in more than three years, when shares rose 11.8% on March 26, 2020.
Broadcom shares also led Friday gainers on the S&P 500
SPX,
which closed up 1.3%.
This past Thursday, Susquehanna Financial analyst Christopher Rolland, who has a positive rating on Broadcom, raised his price target to $785 from $690.
After Apple Inc.’s
AAPL,
recent earnings, which reported a surprise jump in iPhone sales, Rolland said reduced iPhone checks “present a modest risk to guidance,” but said the “multi-year, multibillion-dollar extension with Apple for RF/Wi-Fi components should mitigate Apple in-sourcing 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.
“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.
