The U.S. stock market is likely to be a below-average performer over the next 24 months, according to an obscure sentiment index — as are 25 high-flying, popular U.S. stocks including Nvidia NVDA, -2.61%, Super Micro Computer SMCI, -0.60% and Broadcom AVGO, -1.97%.
Nvidia's price-to-sales ratio is roughly 4x higher than its lifetime average. Broadcom's split comes after making considerable yearly gains.
Broadcom provides a variety of foundational products and services to the semiconductor and infrastructure software industries. The company's particular business focus, paired with its historical earnings multiple, makes it more value-oriented than other chip companies.
Rapid growth in artificial intelligence revenue puts investors in front of a once-in-a-lifetime opportunity.
Since I upgraded Broadcom stock from "Hold" to "Buy" in April 2024, it has gone up by nearly 21% since, beating SPY meaningfully. I think more to come. Q2 FY2024 financial results show revenue growth, particularly in AI, and infrastructure software segments. I believe that AVGO's diversified customer base and high recurring revenues from multi-year contracts position the company for sustainable growth in the coming years.
Broadcom Inc. (AVGO) closed the most recent trading day at $157.35, moving -1.97% from the previous trading session.
If you're looking for cybersecurity stocks to buy in July, a good place to look is the First Trust NASDAQ Cybersecurity ETF (NASDAQ: CIBR ) with $6.76 billion in net assets. It is the largest ETF focusing on cybersecurity stocks, up 13% year-to-date and 28% over the past year.
Broadcom (NASDAQ: AVGO ) stock is in the spotlight after The Information reported that the firm was in talks with OpenAI about producing a new chip. These talks still appear to be in the early stages, as OpenAI has engaged in discussions with other chip designers as well.
We're now in the fifth-generation (5G) wireless internet era, a transformative technology that marks a new age of connectivity. Moreover, given the disruption it has caused and more to come, investing in 5G stocks becomes a no-brainer.
During June and July, things got a bit overheated with Broadcom (NASDAQ: AVGO ) shares. Prior to its July 15 ten-for-one stock split, Broadcom stock was trading at around $175 per share.
Nvidia and Broadcom recently completed 10-for-1 stock splits to make shares more affordable in the wake of tremendous price appreciation. Historically, stocks have produced an average return of 25% during the 12-month period after a stock split announcement.
TD Cowen adjusted its price target to $210 following the company's recent stock split, implying upside of 35%. Broadcom's infrastructure technology products benefit from the growing demand for AI solutions in the data center market.