Hock E Tan, President and CEO of Broadcom Inc. (NASDAQ:), sold 45,000 shares of the company’s common stock on December 24, according to a recent SEC filing. The shares were sold at an average price of $239.96, amounting to a total transaction value of approximately $10.8 million. Following this sale, Tan holds 842,836 shares directly.
Additionally, the filing reported a transaction involving the disposition of 130,000 shares, categorized under a different transaction type, with no monetary exchange involved. After these transactions, Tan’s direct ownership stands at 712,836 shares. An additional 1,131,910 shares are held indirectly by a trust.
In other recent news, Broadcom Limited has been the center of attention for its strong performance and optimistic future prospects, specifically in the artificial intelligence (AI) market. UBS has increased Broadcom’s price target to $270, while Bernstein SocGen Group raised theirs to $250, both maintaining a positive rating on the stock. These adjustments follow a significant rise in the company’s AI revenues, which reached $12.2 billion in fiscal year 2024, a threefold year-over-year increase. The company anticipates these revenues to grow to $17-18 billion in fiscal year 2025, marking a 40% year-over-year increase.
Further, JPMorgan and Goldman Sachs have also raised their price targets for Broadcom, maintaining their Overweight and Buy ratings respectively. These revisions are based on the company’s strong AI revenue growth and the forecasted expansion of the AI semiconductor serviceable available market to between $60 billion and $90 billion by fiscal year 2027.
Broadcom’s recent earnings report revealed revenues of $14.1 billion and earnings per share of $1.42 for the fiscal fourth quarter of 2024. The company’s semiconductor revenues of $8.2 billion exceeded expectations, largely driven by stronger AI revenue. However, the software segment underperformed, reporting $5.8 billion in revenue.
These recent developments highlight Broadcom’s strong financial health and growth prospects, particularly in the AI sector, prompting several financial firms to raise their price targets.
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