The shares were sold at an average price of approximately $240.004 each, resulting in a total transaction value of $1,569,626. Following this sale, You maintains ownership of 30,450 shares in the semiconductor company. This figure includes adjustments for a ten-for-one forward stock split that took effect in July 2024 and 1,890 restricted stock units. The company, currently trading at a P/E ratio of 173.5, appears overvalued according to InvestingPro's Fair Value analysis. For deeper insights into Broadcom (NASDAQ:AVGO)'s valuation and 18 additional ProTips, explore the comprehensive Pro Research Report available on InvestingPro. The company, currently trading at a P/E ratio of 173.5, appears overvalued according to InvestingPro's Fair Value analysis. For deeper insights into Broadcom's valuation and 18 additional ProTips, explore the comprehensive Pro Research Report available on InvestingPro. The shares were sold at an average price of approximately $240.004 each, resulting in a total transaction value of $1,569,626.
Following this sale, You maintains ownership of 30,450 shares in the semiconductor company. This figure includes adjustments for a ten-for-one forward stock split that took effect in July 2024 and 1,890 restricted stock units.
In other recent news, Broadcom Limited has been the focus of several financial firms due to the company's robust growth in the artificial intelligence (AI) sector. Bernstein SocGen Group and JPMorgan have both maintained their positive ratings on Broadcom, citing strong AI revenue and the potential for further growth. Goldman Sachs has also reiterated its Buy rating on the company, with a revised 12-month price target of $240.
Broadcom's recent fiscal fourth-quarter 2024 earnings showed revenues of $14.1 billion and earnings per share (EPS) of $1.42, slightly above the EPS estimate of $1.39. For the first quarter of fiscal year 2025, Broadcom anticipates revenues of $14.6 billion and an EBITDA margin of approximately 66%, with an implied EPS of $1.51.
The company also reported a threefold year-over-year increase in AI revenues for fiscal year 2024, reaching $12.2 billion. These developments have led to upward revisions in price targets from financial firms including Goldman Sachs, TD Cowen, Piper Sandler, Cantor Fitzgerald, Baird, and Bernstein SocGen Group.
Broadcom's AI revenue is projected to grow to $17-18 billion in fiscal year 2025, representing a 40% year-over-year rise. This growth is underpinned by the company's serviceable available market (SAM) for its three existing AI customers, which is projected to grow from $15-20 billion to $60-90 billion by fiscal year 2027.
Broadcom's financial health is rated as great, supported by strong profitability and momentum metrics. CFRA views the company's recent 11% dividend increase favorably and anticipates a focus on reducing debt, with a $2.5 billion reduction noted in the October quarter. The firm foresees over $30 billion in free cash flow for Broadcom in fiscal year 2025.
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