Why Broadcom Stock Is Rising Today
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Broadcom (AVGO 2. 19%) stock is moving higher Wednesday amid some bullish momentum for the broader market and a major valuation milestone for another player in the artificial intelligence (AI)...
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July 9, 2025
01:43 PM
The Motley Fool
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Broadcom (AVGO 2. 19%) stock is moving higher Wednesday amid some bullish momentum for the broader market and a major valuation milestone for another player in the artificial intelligence (AI) space
The company's price was up 2. 2% as of 12:40 p
The stock had been up as much as 2. 8% earlier today
Meanwhile, the S&P 500 (^GSPC 0. 61%) and the Nasdaq Composite (^IXIC 0. 94%) were up 0. 6%, respectively
The stock market is moving higher today as investors mostly shrug off some trade-related risk factors, and Nvidia's push into a $4 trillion market capitalization may also be helping to lift Broadcom stock
Bullish coverage from an analyst that was published yesterday could also be helping to support gains for the connectivity specialist's price
Image source: Getty Images
Broadcom stock rises as Nvidia sets new valuation record With its gains today, Nvidia has reached a $4 trillion valuation -- making it the first company in history to do so
Nvidia's graphics cessing units (GPUs) have been the most important hardware for the training of AI models, and they've been at the center of a huge boom in data center spending
Meanwhile, Broadcom's position in networking hardware and software has also helped it ride the AI data center wave -- and the two companies are often looked at as performance indicators for each other
Is Broadcom headed to $330 per
In addition to momentum for the broader market and Nvidia's valuation milestone, Broadcom may be seeing continued valuation benefits from analyst coverage that was published yesterday
KeyBanc recently reiterated an overweight rating on the stock and raised its one-year price target from $315 per to $330 per
The investment firm said that it's seeing signs that demand in AI duct remains quite strong
As of this writing, KeyBanc's new price target implies additional upside of 19%
If the ramp-up for AI infrastructure continues at a rapid pace, Broadcom should be a major beneficiary
Keith Noonan has no position in any of the stocks mentioned
The Motley Fool has positions in and recommends Nvidia
The Motley Fool recommends Broadcom
The Motley Fool has a disclosure policy.
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