Bank of America sees more upside for Broadcom, with its sales growth likely to double as a result of the AI ​​craze. Analyst Vivek Arya raised his price target by $150 to $2,150, while reiterating his buy rating and top pick. Arya’s new target suggests shares of the semiconductor stock could rise around 30% from last week’s closing level. A key part of Arya’s appeal is sales growth roughly doubling to a CAGR of around 13% between fiscal years 2024 and 2026. This will be driven by a 24% CAGR in its AI-connected silicon and VMWare businesses , he said. These units should soon account for more than half of the company’s total sales. “In our view, AVGO’s diverse growth drivers, highly regarded management team and unique track record of capital appreciation, dividend growth and over €1m yield can justify a multiple premium,” Arya wrote to clients . Additionally, the analyst said the stock has seen a conversion from value to growth. Arya’s new price target is based on a multiple of 35 times earnings in calendar year 2025, though he noted that it is still within the range set by peers between 18 and 37. To be sure, he warned that any changes in sentiment or fundamentals around artificial intelligence in business could affect stock performance. Shares have soared more than 45% this year as artificial intelligence has caught the attention of traders. With that gain, the stock outperformed both the iShares Semiconductor ETF ( SOXX ) and the tech-heavy Nasdaq Composite.
