Broadcom Stock Hits $1.2 Trillion Market Cap Milestone

Driven by the rising demand for AI-specific chips, Broadcom, a leading semiconductor design company, has secured significant chip design contracts from top-tier technology firms, leveraging its advanced backend chip design capabilities.

Broadcom is scheduled to release its fiscal 2025 second-quarter earnings report after the U.S. market close on June 5. Investor optimism surrounding the upcoming results fueled a 3.27% surge in Broadcom's stock price on June 3, closing at $256.85 per share. This breakthrough surpassed the previous all-time high set on December 16 last year, pushing Broadcom's market capitalization beyond $1.2 trillion for the first time—a historic milestone.

According to reports from MarketWatch and other financial media, Citi Research analyst Christopher Danely raised Broadcom's target price from $210 to $275 on June 3, reaffirming a "Buy" rating. Danely cited sustained strong AI demand and expectations that the latest earnings will exceed forecasts, maintaining a positive outlook on Broadcom's long-term growth prospects.

Danely projects that Broadcom's AI-related revenue will account for approximately 30% of total revenue this year. Meanwhile, non-AI business segments, which peaked last year, are expected to decline by about 40% but show signs of recovery moving forward. Revenue estimates for the latest quarter are around $15 billion, aligning with consensus among industry analysts.

Additionally, on June 3, Broadcom announced the official shipment commencement of its new data center switch chip, Tomahawk 6. This chip delivers twice the bandwidth compared to competing Ethernet switch products, specifically engineered to meet the rigorous demands of large-scale AI cluster computing.