Broadcom snaps six straight sessions of gains

Broadcom (NASDAQ:AVGO) shares snapped six straight sessions of gains, as the stock closed 3% lower at $172.7 on Friday.

The California-based chipmaker gained over 6% in the preceding six sessions. The stock has gained nearly 60% so far this year, compared to the over 20% rise in the broader S&P 500 Index.

AVGO is up 10% over the past one month. The stock closed 1.5% higher on Thursday at $178.09.

Looking at Seeking Alpha’s Quant Rating, AVGO has a Hold rating with a score of 3.48 out of 5. The company received A+ in the prospect of profitability, while it got an F in valuation.

Turning to the Wall Street community, 37 analysts gave AVGO a Buy and above. Five analysts have given the stock a Hold recommendation, and no one recommended Sell or lower.

Seeking Alpha analysts are also bullish and see the stock as a Buy.

“Despite intensified competition from Nvidia, Broadcom’s AI-related chip growth and software integration with VMWare support a Strong Buy rating,” noted a recent Seeking Alpha analysis by Khaveen Investments.

However, another Seeking Alpha analysis by Livy Investment Research said that the stock’s post-earnings pullback reflects concerns pertaining to the uncertain recovery timeline for Broadcom’s non-AI segments, which still account for the bulk of its business.