Broadcom (AVGO) stock has risen only 13% year-to-date, underperforming several chip stocks amid concerns about rising competition from Taiwan-based semiconductor company MediaTek. However, Morgan Stanley analyst Joseph Moore remains bullish on AVGO stock and reiterated a Buy rating with a price target of $502, saying “AVGO remains a core AI winner.” He views Broadcom as a “close #2” to chip giant Nvidia (NVDA), driven by its dominance in the ASIC market, networking business, and new customer wins.TipRanks Welcomes a New ETF – NYSE:RANK TipRanks has entered a new arena in the investing world, powering the index of an ETF based on its unique data now trading under the ticker RANK on the NYSE. RANK tracks the performance of the TipRanks US Momentum Analysts Index, a rules-based index of 50 large U.S. companies.
Morgan Stanley Is Confident About Broadcom Stock
Moore said he is “surprised” by Broadcom stock’s year-to-date underperformance relative to peers, despite the company’s AI growth momentum. The 5-star analyst noted that while Broadcom’s weakness stems from several factors, including investors favoring faster-growth AI chip stocks, the most important reason remains the debate over MediaTek vs. AVGO’s share in Google’s (GOOGL) TPU (tensor processing unit) business.
