Why Broadcom Stock Eked out a win on Wednesday

On a fairly forgettable Wednesday for U.S. stock markets, Broadcom (NASDAQ: AVGO) was a bit of an outperformer. The company's stock saw a bump in price, rising by 0.7% after an analyst initiated coverage with a positive evaluation. That performance, although modest, was good enough to top the essentially flat-lining S&P 500 index.

A potential 20% price gain

That morning, before the market's opening bell, Seaport Global Securities's Jay Goldberg launched his coverage of Broadcom. Happily for the company and its investors, Goldberg rated the sturdy tech stock as a buy, at a price target of $230 per share. That figure anticipates nearly 20% upside to the current price.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

According to reports, Goldberg's bullish take on Broadcom is due to several factors, among which is its determination to address the demands for artificial intelligence (AI) functionalities. The analyst believes the company is one of the leading beneficiaries of the surge in spending for such functionalities, but this isn't yet priced into its stock.

He also pointed to Broadcom's impressive client list, which includes sector powerhouses such as Alphabet's Google, Apple, and TikTok. He also mentioned that the company's core, non-AI products are very competitive on the market and quite profitable to boot.

Varied sources of revenue

Broadcom is a robust and successful business that has several thick revenue streams, not least of which is its custom chip offerings. I'd agree with Goldberg's assessment that its commitment to AI isn't fully appreciated by the market, and I think his buy recommendation on the shares is entirely justified.

Should you invest $1,000 in Broadcom right now?

Before you buy stock in Broadcom, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Broadcom wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $607,048!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $668,193!*

Now, it’s worth noting Stock Advisor’s total average return is 880% — a market-crushing outperformance compared to 161% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 28, 2025

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Eric Volkman has positions in Apple. The Motley Fool has positions in and recommends Alphabet and Apple. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.