Broadcom stock is struggling for direction Tuesday after the chipmaker fell sharply Monday following the release of DeepSeek, a cheap AI chatbot.
Broadcom’s business relies heavily on their networking products, which are crucial for data transfer in AI systems. If the market for premium AI chips experiences a downturn, amid the rise of DeepSeek, it could create a domino effect, potentially hurting sales of Broadcom’s supporting technologies and components.
Broadcom Inc.'s strong stock gains, dividend growth, and strategic acquisitions make it a long-term investment opportunity. Learn more on AVGO stock here.
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With a market cap of $947.5 billion, Broadcom Inc. (AVGO) is a global leader in designing, developing, and supplying semiconductor solutions, with a focus on complex digital, mixed-signal CMOS devices,
Broadcom's AI revenue is resilient to trade wars and sanctions, unlike Nvidia, making it a better investment in the current climate. Read more about AVGO stock here.
DeepSeek's latest AI model, R1, raises questions about AI chip demand with its low training cost. But history shows efficiency drives more demand.
Morgan Stanley lowered the firm’s price target on Broadcom (AVGO) to $246 from $265 and keeps an Overweight rating on the shares. The DeepSeek
Shares of semiconductor giant Broadcom (NASDAQ: AVGO) were up Friday, gaining 2.7% as of noon ET, but were up as much as 3.6% earlier in the day. The rise comes as the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) were up 1% and 1.
Shares of exchange-traded funds that hold semiconductor stocks were down Tuesday morning, extending Monday’s selloff sparked by DeepSeek fears. The iShares Semiconductor ETF, whose top holdings as of Monday included Broadcom Inc.
Monday’s trading session saw mixed results in the U.S. stock market. The S&P 500 dropped by 1.5% to 6,012.28, shedding nearly 90 points, while the NASDAQ fell 3.07% to 19,341.83. On the other hand, the Dow managed to trade up by 0.