Broadcom (NASDAQ: AVGO) rebounded back strongly on Friday after a fall in the previous session. The stock finished the day 5.4% higher, outperforming more general market increases—the S&P 500 climbed 1.8% and the Nasdaq Composite added 2.1%.
Market Recovery Boosts Broadcom Shares
Broadcom’s rise followed significant losses the day before as part of a larger market comeback. A White House statement stating that the effective duty rate on Chinese imports is 145%—much higher than President Trump had first suggested on social media set off Thursday’s sell-off.
Nevertheless, on Friday investors came back to the market with fresh optimism, therefore starting a recovery across important indices. This comeback bounce helped Broadcom shares to rise with other semiconductor and technology companies.
Analyst coverage also generates investor interest.
Apart from the market rebound, Broadcom benefited from new analyst coverage. Though he kept a Buy rating, Citigroup analyst Christopher Danely cut his one-year price objective for the stock from $220 to $210.
Danely mentioned worries about the effects of tariffs on the semiconductor industry and a possible U.S. recession. Nevertheless, the new pricing indicates a possible increase of almost 15% from present levels even with the lower goal.
Good Day, But 2025 Has Been Difficult
Broadcom shares are still down roughly 22% year-to-date even with today’s increases. Reflecting conservative investor mood in light of more general economic concerns, the company is now selling at about 27 times this year’s projected profits.
Should You Invest in Broadcom Right Now?
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