The semiconductor name also issued an upbeat annual forecast
Semiconductor concern Broadcom Inc (NASDAQ:AVGO) is taking notes from Nvidia (NVDA). After reporting a fiscal second-quarter earnings and revenue beat, the company issued an upbeat annual forecast amid strong artificial intelligence (AI) chip demand and announced a 10-for-1 stock split. AVGO is up 14.7% to trade at $1,700.65 at last check, after notching a record high of $1,715.74 earlier.
No fewer than 14 analysts raised their price objectives in response, including Jefferies to $2,050 from $1,550. The brokerage bunch already leans optimistic toward the equity, with 26 of 29 in coverage calling it a "strong buy."
The stock is pacing for its fifth-straight daily gain and best single-day percentage pop since March 2020, after breaking through resistance near the $1,440 level this week. So far this year, AVGO is up more than 53%.
Options traders already lean bullish. This is per the equity's 10-day call/put volume ratio of 2.24 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than 92% of readings from the past year.
Drilling down to today's options activity, 86,000 calls and 43,000 puts have crossed the tape so far, which is 11 times the intraday average. The June 1,700 call is most popular, followed by the 1,800 call in that same monthly series, with new positions being opened at the latter.