The Zacks Analyst Blog Highlights Apple, NVIDIA and Broadcom

For Immediate ReleaseChicago, IL – April 9, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple Inc. AAPL, NVIDIA Corp. NVDA and Broadcom Inc. AVGO.Here are highlights from Tuesday’s Analyst Blog:Broadcom Unveils $10 Billion Stock Buyback: Buy AVGO Stock Now? Time and again, Broadcom Inc. has benefitted its shareholders from its growing broadband, wireless and mobile communication businesses. Now, the company’s initiatives to make the most of the burgeoning artificial intelligence (AI) field and the latest stock buyback plan should certainly please income-oriented investors. Let us, thus, look at whether it’s the right time to buy Broadcom shares.Broadcom Stock – Share Repurchase PlanBroadcom’s shares were up more than 3% in the extended trading session on Monday after the company announced a share buyback program of up to $10 billion.The company is expected to repurchase its common stock throughout the year as CEO Hock Tan showed assurance in the semiconductor company and its AI-related investments.The California-based company that supplies semiconductors to Apple Inc. snapped a two-day losing streak due to President Trump’s tariffs and finished over 5% higher on Monday.Stock Buyback – A Good Sign for BroadcomBroadcom’s $10 billion stock buyback program is a tell-tale sign that management is cheerful about the company’s prospects. Tan said that Broadcom is well-poised to excel in infrastructure software for mission-critical operations. He added that the company is in a position to help hyperscalers innovate with generative AI on their platforms.A stock buyback, anyhow, indicates the company is healthy. This is because stock buybacks reduce outstanding shares and increase the value of the remaining shares, benefiting stakeholders. Moreover, the decrease in outstanding shares leads to an increase in the stock price. So, it’s expected that Broadcom’s stock price should scale upward in the long run.Key AVGO Tailwind: XPUs Are Gaining PopularityWhile NVIDIA Corp.’s graphic processing units (GPUs) have gained immense popularity in recent times, AI hyperscalers are also in demand as they can do one type of workload like training AI models very well. Here, Broadcom’s execution processing units (XPUs) step in as they can work on a particular workload and may even outperform NVIDIA’s GPUs.There is a serious demand for Broadcom’s custom AI accelerator, and the company expects the market size for its XPUs to reach $60 billion to $90 billion in fiscal 2027, way more than 2024’s $12.2 billion. Broadcom is developing the first-of-its-kind 2-nanometer AI XPU as demand for accelerator chips grows due to its innate capability to perform tasks at a lower cost than GPUs.Is Now the Time to Buy AVGO Stock?Introducing a share repurchase plan, and XPUs gaining popularity in the coming years should allure anyone to buy Broadcom shares. The company has lately been performing well, with its first-quarter fiscal 2025 revenues coming in at $14.9 billion, up 25% year over year. Its earnings per share (EPS) of $1.60 a share increased 45.5% from a year ago.What’s more, the company’s net profit margin is 18.5%, more than the Electronics - Semiconductors industry’s 13.9%, indicating financial stability.Broadcom also has a sound business model since its dividend payout has increased by 13% over the past five years. Its payout ratio sits at 52%, and the company has sufficient cash balance to pay dividends and spend on share repurchases. The company generated a solid free cash flow of $19.4 billion in fiscal 2024. Check Broadcom’s dividend history here.Brokers are, thus, optimistic about the company’s growth potential as they raise AVGO’s average short-term price target by 70.4% to $249.25 from the previous $146.29. The highest target is set at $300, an upside of 105.1%.For now, Broadcom has a Zacks Rank #2 (Buy), and the Zacks Consensus Estimate of $6.60 for AVGO’s EPS is up 15% from a year ago. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Zacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Broadcom Inc. (AVGO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks