- Broadcom surged more than 13% on Thursday as its upbeat annual forecast highlighted an insatiable demand for chips used in powering AI-focused technology, while its announcement of a stock split added to the euphoria.
"It's a sure-fire way to send your stock soaring," Triple D Trading analyst Dennis Dick said, adding the move was "right out of Nvidia's book".Broadcom now trades at about 28 times expected earnings, compared with a price-to-earnings ratio of about 40 for Nvidia and rival Marvell Technology. "We continue to see Broadcom as incredibly well-positioned to benefit from rising generative AI investment in the long term," Morningstar analysts said.
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