Everything Is Going Right for Broadcom, So It’s Time to Accumulate AVGO Stock

Microsoft, Alphabet, Goldman Sachs, and 13 other companies have objected to trading tokenized versions of their shares on OKXICE, a 24/7 crypto venue. The SEC's new rule allows such trading, but the companies' concerns include price drift and reputational risks. OKXICE plans to trade tokens for 62 companies, with 16 objecting so far. The objection list is dominated by AI and tech firms, which are particularly sensitive to price volatility and news-driven swings.

Broadcom (AVGO) launched Arcot Scam Defense to detect payment scams post-authentication. Shares fell 4.51% to $322.55 on Thursday. Pilot results suggest potential fraud prevention, but data is limited to one issuer.

Tesla and Meta reported earnings, causing AI-related stocks to decline. Tesla's revenue was flat, but it generated $1.5B in free cash flow, while Meta's revenue rose 26%. Both companies' capital expenditure plans sparked investor concern about AI spending, affecting chipmakers like Nvidia, Micron, and AMD.

Tigress Financial initiated coverage on Broadcom (AVGO) with a buy rating and $600 price target, citing AI growth, custom silicon, and high-margin software. The firm noted 49% revenue growth and 76% gross margin. Other analysts also highlighted Broadcom's AI revenue outlook and market position.

Wall Street set to open lower on Thursday due to AI-related concerns, with Tesla, Meta, and other tech stocks declining. Tesla fell 3.5% after cutting its capital expenditure forecast, while Meta slipped 2.4% due to AI expansion costs. SpaceX and Super Micro also dropped despite strong earnings. Oil prices rebounded, adding to market jitters. S&P 500 earnings growth forecast raised to 32.3%.

Nvidia, Broadcom, and Micron shares rose in after-hours trading following SpaceX's strong earnings report, which showed significant AI infrastructure spending. SpaceX's revenue surged 161% year-over-year, with $16.4B spent on AI operations. Analysts see upside for these semiconductor companies, with Nvidia, Broadcom, and Micron having average price targets of $323.45, $519.21, and $1,585.93 respectively.