Broadcom's long-awaited stock split on Friday! Will it continue to rise in anticipation of the “next NVIDIA”?
$Broadcom(AVGO.US$Is1:10 stock split after closing on 7/12It is scheduled to be carried out, and stock trading after the split will begin on 7/15. Since the official announcement of the stock split plan, Broadcom's stock priceA rise of over 14%I'm showing it.
According to Bank of America's past analysis, stock splits have no impact on corporate fundamentals and have no impact on market capitalization, but from a historical perspective,A positive stock split is a bullish signalIt has been seen in the market as
According to the bank's statistics since 1980, companies that have historically announced stock splits among the S&P 500 constituent stocks have greatly outperformed the index for 3 months, 6 months, and 12 months after first announcing the stock split plan, and while the average rate of increase of the S&P 500 during the same period was 11.9%, the stock price of the target company has risen by an average of 25.4% over 12 months.
For example, $Apple(AAPL.US$Is the split of 1 to 4 in 2020After making the announcement,Shares rose 30% or more the following yearI did it. $NVIDIA(NVDA.US$The stock price was about 600 dollars at the time of the 1 to 4 split in 2021, but it rose to 835 dollars the night before the split.Shares rose more than 450% after the splitI did it. NVIDIA's stock split at the beginning of this year once again shows this.
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Can Broadcom's performance support rising stock prices?
In addition to the effects of the stock split, Broadcom's after the stock splitAnalysts are also bullish on earnings and earnings forecastsI'm looking at it like that.
Prior to this, according to the second quarter financial results announced by Broadcom,Adjusted earnings per share was $10.96Then, it exceeded analysts' expectations of $10.85. Broadcom'sSales also rose from 8.7 billion 30 million dollars to 12.4 billion 90 million dollarsI did it.
According to the FactSet survey, the average analyst forecast value is 12 billion60 million dollars. Broadcom also raised its full-year sales forecast from the previous 50 billion dollars to 51 billion dollars.
Broadcom acquired the cloud computing company VMware for 69 billion dollars last fall. This acquisition is regarded as the second largest acquisition in the 2020s, and contributed greatly to Broadcom's rapid revenue increase of 43% in the second quarter compared to the same period last year.
further. BroadcomBlessed with opportunities to grow in the AI fieldIt is said. Currently, 7 of the 8 largest AI clusters in the world use Broadcom Ethernet. Broadcom itself expects Ethernet-related revenue to increase 40% this year due to demand for AI networking.
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Target price increases one after another due to Wall Street
Broadcom is one of the stocks that has brought the most benefits to investors from the AI boom.
According to the bank's statistics since 1980, companies that have historically announced stock splits among the S&P 500 constituent stocks have greatly outperformed the index for 3 months, 6 months, and 12 months after first announcing the stock split plan, and while the average rate of increase of the S&P 500 during the same period was 11.9%, the stock price of the target company has risen by an average of 25.4% over 12 months.
For example, $Apple(AAPL.US$Is the split of 1 to 4 in 2020After making the announcement,Shares rose 30% or more the following yearI did it. $NVIDIA(NVDA.US$The stock price was about 600 dollars at the time of the 1 to 4 split in 2021, but it rose to 835 dollars the night before the split.Shares rose more than 450% after the splitI did it. NVIDIA's stock split at the beginning of this year once again shows this.
In addition to the effects of the stock split, Broadcom's after the stock splitAnalysts are also bullish on earnings and earnings forecastsI'm looking at it like that.
Prior to this, according to the second quarter financial results announced by Broadcom,Adjusted earnings per share was $10.96Then, it exceeded analysts' expectations of $10.85. Broadcom'sSales also rose from 8.7 billion 30 million dollars to 12.4 billion 90 million dollarsI did it.
According to the FactSet survey, the average analyst forecast value is 12 billion60 million dollars. Broadcom also raised its full-year sales forecast from the previous 50 billion dollars to 51 billion dollars.
Broadcom acquired the cloud computing company VMware for 69 billion dollars last fall. This acquisition is regarded as the second largest acquisition in the 2020s, and contributed greatly to Broadcom's rapid revenue increase of 43% in the second quarter compared to the same period last year.
further. BroadcomBlessed with opportunities to grow in the AI fieldIt is said. Currently, 7 of the 8 largest AI clusters in the world use Broadcom Ethernet. Broadcom itself expects Ethernet-related revenue to increase 40% this year due to demand for AI networking.
Broadcom is one of the stocks that has brought the most benefits to investors from the AI boom.
The Goldman Sachs analyst team wrote in the research report, “Similar to NVIDIA,Broadcom plays an important part in the ongoing AI infrastructure constructionIt says, “I'm watching it.”
Bank of America also stated that Broadcom, like NVIDIA, is a great option in the AI field, and even after announcing strong results, it has even greater potential. BroadcomChances are high that it will be the next member of the 1 trillion dollar club on the US stock marketWell, Ethernet is seen as an important growth driver for the company. Bank of America is currently raising Broadcom's target stock price of 1,703 dollars to 2,150 dollars.
Morgan Stanley analyst Joseph Moore recently presented Broadcom's “bullish targets,”It is expected to rise to $2,292 by 2025/6I'm doing it. Considering the stock split, it is said that this figure will change to 229.20 dollars. However, regardless of stock prices, this forecast means there is plenty of room for Broadcom's current share price to continue rising to $1,650 per share.
Source: Moomoo, Forbes
ー MooMoo News Evelyn
This article uses automatic translation for some of its parts
Bank of America also stated that Broadcom, like NVIDIA, is a great option in the AI field, and even after announcing strong results, it has even greater potential. BroadcomChances are high that it will be the next member of the 1 trillion dollar club on the US stock marketWell, Ethernet is seen as an important growth driver for the company. Bank of America is currently raising Broadcom's target stock price of 1,703 dollars to 2,150 dollars.
Morgan Stanley analyst Joseph Moore recently presented Broadcom's “bullish targets,”It is expected to rise to $2,292 by 2025/6I'm doing it. Considering the stock split, it is said that this figure will change to 229.20 dollars. However, regardless of stock prices, this forecast means there is plenty of room for Broadcom's current share price to continue rising to $1,650 per share.
Source: Moomoo, Forbes
ー MooMoo News Evelyn
This article uses automatic translation for some of its parts
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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