Broadcom, The Magnificent 7 Stock In Waiting: Can The Chipmaker Replace EV Carmaker Tesla?
Portfolio Pulse from Neil Dennis
Broadcom Inc (NASDAQ:AVGO) has seen a 10% increase in shares, potentially positioning it to overtake Tesla Inc (NASDAQ:TSLA) in market capitalization. This comes as Tesla's shares have slumped 22%. Broadcom's upcoming quarterly earnings on March 7 are highly anticipated, with expectations of significant revenue and earnings growth, partly due to its acquisition of VMWare. Comparatively, Nvidia Inc (NASDAQ:NVDA) has outperformed with a 235% gain in shares, but both Broadcom and Nvidia face potential volatility ahead of Nvidia's earnings report. Analysts remain bullish on Broadcom, with several raising their price targets.
February 21, 2024 | 5:24 pm
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POSITIVE IMPACT
Broadcom's upcoming earnings and its recent acquisition of VMWare position it for potential growth, with analysts raising price targets.
Broadcom's stock is likely to see positive short-term movement due to high expectations for its upcoming earnings report and the strategic acquisition of VMWare, which analysts believe will significantly boost its financials.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Both Broadcom and Nvidia, as fabless chipmakers, outsource production to foundries like Taiwan Semiconductor Manufacturing, indicating a potential indirect impact on TSM.
While the article does not directly discuss TSM's financials, its role as a foundry for both Broadcom and Nvidia suggests an indirect impact on its business based on these companies' performance.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Nvidia leads the S&P 500 gains but faces potential volatility ahead of its earnings report, with shares already down 2%.
Nvidia's significant past performance puts it in a precarious position ahead of its earnings report, with any potential disappointment likely to impact its stock price in the short term.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 70
NEGATIVE IMPACT
Tesla's shares have slumped 22%, potentially allowing Broadcom to overtake its market cap position.
Tesla's recent share slump makes it vulnerable to being overtaken by Broadcom in terms of market capitalization, especially if Broadcom's upcoming earnings report exceeds expectations.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80