Schaeffer's Top Stock Picks for '25

Broadcom Stock Extends December Rally

Morgan Stanley added AVGO to its "favorite ideas" for 2025

Deputy Editor
Dec 24, 2024 at 11:24 AM
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Shares of Broadcom Inc (NASDAQ:AVGO) are extending their December gains, up 2.3% at $237.61 at last glance and headed for their third-straight win. The stock is up 46.2% since the start of the month, and several analysts have chimed in with price-target hikes along the way. Just last session, AVGO rose after Morgan Stanley raised its price target to $265.00 from $233.00, and added it to its "favorite ideas" list for 2025. 

This end-of-the-year rally has helped push Broadcom stock to a 112.3% year-to-date gain. The stock is also firmly above all daily moving averages between the 20- and 320-day trendlines. 

The optimistic sentiment carries over into the options pits too. AVGO's 50-day call/put volume ratio of 2.51 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 95% of readings from the past year. 

Options don't look like a bad way to go when weighing in on the stock at the moment either. AVGO's Schaeffer's Volatility Index (SVI) of 42% ranks in just the 9th percentile of its annual range, meaning options traders are pricing in low volatility expectations. 

 

 

 
 

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