Broadcom Stock Forecast 2024, 2025 & Beyond: Is the Best Yet to Come?

Investing in Broadcom (AVGO) is about to become a lot cheaper – despite the US tech giant’s valuation having soared 88% over the past year.

The semiconductor maker is planning a 10-for-one stock split in July that could see its share price tumble from $1,600 to around $160.

But is now the right time to buy into the story, or have potential investors missed the boat? What will happen to the Broadcom stock price over the next 12 months?

Our Broadcom stock forecast explains how the stock split will affect investors and reveals what Wall Street analysts are expecting to happen over the coming months.

Broadcom Stock Analysis: How Has the Price Performed?

It’s been a great year for Broadcom investors. As the market closed on June 24, 2024, the Broadcom stock price stood at $1,592.21.

This is an impressive 88% increase from the $848.40 level a year ago and 47% from the $1,085.38 price at the start of 2024.

However, the AVGO stock price has slipped since hitting an all-time high closing price of $1,822.86 on June 17, 2024, according to MacroTrends.

Broadcom’s 52-week high is $1,851.62, while the low for the same period is $795.09. This means the average AVGO stock price over the past year is $1,101.78.

The recent fall could be due to a slight cooling in the wake of the past year’s increases, as Nvidia (NVDA) has experienced something similar in recent weeks.

The NVDA stock price closed at $118.11 on June 24, 2024 – almost 16% lower than it was on June 20 – representing a loss of more than $500 billion in its market value.

Booming Tech Market

Broadcom is the 11th largest company in the world by virtue of its $741.15 billion market capitalization, according to Companies Market Cap.

It’s also the third-biggest player in the increasingly important semiconductor market, behind industry giant Nvidia and Taiwanese TSMC.

Latest Broadcom News: What Have Been the Key Drivers?

The next stage of our Broadcom stock forecast 2024 is to look at the key drivers behind the stock price performance.

We also consider the most important Broadcom news that is expected to influence the company’s valuation over the coming months.

10-For-One Stock Split

On June 12, 2024, Broadcom announced a 10-for-one stock split because the price of common stock had increased significantly over the last few years.

It stated: “We believe the stock split will make ownership of Broadcom common stock more accessible to investors and employees.”

The move follows a similar split carried out in June by Nvidia.

Broadcom’s stock split, which is due to take place after the close of the Nasdaq Global Select Market on July 12, 2024, will see shareholders receiving an additional nine shares for every one owned.

Trading is expected to commence on a split‐adjusted basis when the stock market reopens for business on July 15, 2024.

“At that time, the stock price per share is expected to be reduced to one‐tenth of the pre‐split value, while the number of shares outstanding will be increased to ten times the number of shares outstanding pre‐split,” added the statement.

For example, if the stock price is $1,400 at the time of the split, the ‘new’ price is likely to be $140 when trading resumes.

Example of How the Broadcom Stock Split Is Expected to Work

Second Quarter Results

The stock split was announced at the same time as Broadcom revealed revenue of $12.5 billion for the second quarter of fiscal year 2024. This was 43% higher than the same period last year.

Meanwhile, cash from operations of $4.6 billion for the second quarter, less capital expenditures of $132 million, resulted in $4.5 billion of free cash flow, or 36% of revenue.

In a statement, Hock Tan, Broadcom’s president and chief executive, said the results had been driven by AI demand and VMware.

“Revenue from our AI products was a record $3.1 billion during the quarter,” he said. “Infrastructure software revenue accelerated as more enterprises adopted the VMware software stack to build their own private clouds.”

Tan also noted that Broadcom was raising its fiscal year 2024 guidance for consolidated revenue to $51 billion and adjusted EBITDA to 61% of revenue.

Broadcom Second Quarter Fiscal Year 2024 Financial Highlights

Broadcom Stock Forecast: Analysts’ Views

What do analysts make of Broadcom’s prospects?

Broadcom is definitely playing catch up to the AI beast that is Nvidia, according to Danni Hewson, head of financial analysis at AJ Bell.

She told Techopedia:

“While the latter is most definitely the one making most of the shovels to facilitate the current tech gold rush, the former is quietly persuading some customers to switch allegiance.”

Hewson is particularly encouraged by the business relationships that the company has managed to forge.

“With partnerships with Google and Meta and reports of a tie-up with TikTok owner ByteDance, Broadcom’s pipeline looks solid, even if tensions between the US and China remain,” she said.

Of course, only time will tell how well Broadcom performs in comparison to Nvidia, but Hewson remains optimistic in her Broadcom stock forecast. She added:

“It will be hoping to replicate the success enjoyed by its main rival following its stock split earlier this month and with AI up at the top of most investors’ wish lists giving more access to retail investors will likely supercharge interest.”

William Kerwin, equity analyst at Morningstar, has had a fair value rating of $1,550 on the stock since June 13, 2024.

In his latest Broadcom share price forecast, he branded the company’s full-year guidance as “conservative” and noted how recent AI chip sales had exceeded his expectations.

“We continue to see Broadcom as incredibly well-positioned to benefit from rising generative AI investment in the long-term,” he wrote. “It is the second-largest global accelerator vendor behind Nvidia in terms of its custom chip business.”

Kerwin added that Broadcom should see strong medium-term growth for its custom accelerators, with a growing customer base that includes Google and Meta. He explained:

“We also believe Ethernet networking will take significant share from Nvidia’s Infiniband in generative AI networks over the next five years, which should greatly benefit Broadcom as the top player in high-speed Ethernet merchant networking chips.”

Broadcom Stock Predictions: Where Will AVGO Stock Price Go Next?

Is Broadcom a buy, hold, or sell?

The stock is a ‘moderate buy,’ according to the views of 28 Wall Street analysts compiled by MarketBeat as of June 25, 2024. Twenty six see it as a buy, while two have hold recommendations in place.

Their consensus Broadcom stock forecast 2025 is for AVGO shares to hit $1,673.04 over the coming year. This would represent a 5.08% upside over the $1,592.21 closing price on June 24, 2024.

The following table shows the latest analysts’ Broadcom stock predictions.

The highest Broadcom price target came in at $2,100, while the lowest was $1,500.

Meanwhile, Wallet Investor’s algorithmic forecasts suggest the price could reach $1,936.89 over the coming year. Its five-year Broadcom stock forecast to June 2029 puts AVGO stock at $2,917.31.

However, a Broadcom stock forecast 2030 isn’t possible due to the variables involved in making predictions that far in advance.

Note that analysts’ and algorithm-based forecasts might prove to be wrong.

The Bottom Line: Should I invest in Broadcom?

Broadcom is yet another technology company that’s riding the AI wave and analysts appear optimistic that even brighter days are ahead. The US semiconductor company was founded in the early 1990s but has seen its share price soar over the past 12 months due to a tech boom.

The question is: Can this continue? Analysts are divided on this point. The most optimistic suggest the price could smash through the $2,000 level. Others warn it could slip back to around $1,500, while the most pessimistic fear it will collapse to $44, according to MarketBeat.

It’s fair to assume that Broadcom could benefit from rising generative AI investment in the long-term but you need to acknowledge this is a rapidly growing area. Tech companies that are currently in their infancy now could become industry leaders in what is likely to become a ferociously competitive area over the next few years.

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