Broadcom Stock: Is AVGO Outperforming the Technology Sector?
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With a market cap of $1.1 trillion, Broadcom Inc. (AVGO) is a leading global technology company that designs, develops, and supplies a wide range of semiconductor and infrastructure software solutions. Its products power applications across enterprise and data center networking, broadband access, smartphones, industrial systems, and cybersecurity.
Companies valued over $200 billion are generally described as “mega-cap” stocks, and Broadcom fits right into that category. Broadcom operates through two main segments - Semiconductor Solutions and Infrastructure Software and its offerings include advanced system-on-chips, RF components, connectivity solutions, and cybersecurity products under the Symantec brand.
However, the Palo Alto, California-based company has dipped 4.9% from its 52-week high of $251.88. Over the past three months, shares of AVGO have increased 20.1%, which outpaced the Technology Select Sector SPDR Fund's (XLK) rise of 2.5% during the same period.
In the longer term, the chipmaker has risen 3.3% on a YTD basis, outperforming XLK’s marginal decline. Moreover, shares of AVGO have surged 69.5% over the past 52 weeks, compared to XLK’s 7% gain over the same time frame.
Recently, AVGO stock moved above its 50-day and 200-day moving averages.
Shares of AVGO soared 8.6% following its Q1 2025 results on Mar. 6. Broadcom reported better-than-expected revenue of $14.9 billion and adjusted EPS of $1.60, with AI revenue surging over 77% to $4.1 billion. The company also guided Q2 revenue of approximately $14.9 billion and projected $4.4 billion in AI semiconductor revenue as hyperscale customers invest in custom chips.
In comparison with its rival, NVIDIA Corporation (NVDA) has performed weaker than AVGO, with an 18.4% increase over the past 52 weeks and a marginal rise on a YTD basis.
Due to AVGO’s strong performance, analysts are bullish about its prospects. The stock has a consensus rating of “Strong Buy” from the 33 analysts covering the stock, and it is currently trading below the mean price target of $243.86.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
