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Supportive Fundamentals
Strong Q3 earnings report with a 22% YoY revenue increase to $15.95 billion and a non-GAAP EPS of $1.69.
Recent partnerships with major players such as Walmart and Lloyds Banking Group which will drive future growth.
Growth in AI chip business, with AI revenue soaring 63% YoY, indicating strong demand and a $10 billion order from a significant client, likely OpenAI.
Price target upgrades by multiple analysts, with KeyBanc raising the price target to $420, setting a positive sentiment for the stock.
Points of Caution
High valuation, indicated by a P/E ratio of approximately 82, raising concerns about market expectations against future performance.
Recent insider selling activities could point towards concerns among executives regarding the future stock performance.
Market volatility and potential economic downturns may negatively impact tech stocks, including AVGO amidst high evaluations.
Overall market sentiment suggests a growing vulnerability for momentum stocks, which might include AVGO.
Impacting Factors
Strong performance from the integrated AI chip business.
Continued partnerships enhance revenue streams.
Analyst support bolstering investor confidence.
Technical Trend
Technical Rating : Neutral
Stop Loss : 5%
Profit Potential : 5-15%
Target Price : 350-420
Strategy Spotlight - (HA Scalping)
