Semiconductor company Broadcom (AVGO) is reportedly working with Apple (AAPL) on a new chip project. Insiders claim the two are developing an AI chip codenamed “Baltra.” This would be Apple’s first AI chip for server use.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
In this case, Broadcom won’t be making the chip for the tech giant. Instead, it has reportedly provided Apple with networking technology to assist with AI processing. If all goes well, Baltra will enter mass production in 2026.
Considering the increasing interest in AI, it makes sense that semiconductor companies are focusing more on developing chips for that market. If today’s news turns out to be true, it could be a big boost for AVGO shares as Apple is a major player in the AI space. The stock is already up 5.52% today alongside this report, building on a 55.57% increase year-to-date.
Analysts Update AVGO Coverage Ahead of Q4 Earnings
In other news, Broadcom is getting updates from analysts ahead of its Q4 2024 earnings report coming out later this week. The latest call comes from five-start Bernstein analyst Stacy Rasgon. He reiterated the firm’s Buy rating and $195 price target for AVGO shares. This represents a potential 13.5% upside for the stock.
Even more interesting is that four-star Citi analyst Christopher Danely increased his price target for AVGO stock from $175 to $205 yesterday. That’s a potential upside of 19.32% for the shares and comes alongside a reiterated Buy rating for the stock. He has high expectations for Broadcom’s non-artificial intelligence (AI) semiconductor business and expects it to strongly contribute to Q4 sales.
Is AVGO Stock a Buy, Sell, or Hold?
Looking to the rest of Wall Street, the analysts’ consensus rating for Broadcom is Strong Buy based on 12 Buy and two Hold ratings over the last three months. With that comes an average price target of $200.50, a high of $225.00, and a low of $160. This represents a potential 11.13% upside of AVGO shares. It also bears mentioning that analysts will likely update their coverage of AVGO following its earnings report tomorrow.
