Broadcom Shares Rise 5% on Bullish AI Note

Broadcom Inc. shares surged nearly 5 percent on Monday, climbing to around $321 per share, following a bullish research note from Bernstein analyst Stacy Rasgon that highlighted the company's strong position in the artificial intelligence sector. The gain came amid a broader pullback in AI-related stocks, with Broadcom down about 22 percent from its December peak of $413, as investor enthusiasm for rapid AI advancements has tempered.

Rasgon, who assigned an outperform rating to Broadcom, argued that AI demand remains robust despite recent market volatility. He projected the company could achieve earnings per share of $20 or more by fiscal 2027, implying a forward price-to-earnings multiple of about 16 times based on current pricing. This would represent roughly 400 percent earnings growth over two years, or around 100 percent annually, from the trailing 12-month figure of $5.12. Bernstein, which holds a position in Broadcom stock, also issued a similar outperform rating for Nvidia Corp., while taking a neutral stance on Advanced Micro Devices Inc., citing the need for clearer evidence of organic demand for AMD's products.

The positive assessment builds on Broadcom's recent...