CA Inc. shares jump 16% after hours on report of Broadcom buyout offer

1 BUSINESS

Business News - Opportunities - Reviews

 

 

Nvidia, Broadcom stocks gain after Bernstein defends bullish ratings

Shares of Nvidia Corp. and Broadcom Inc. are up 1% and 0.5%, respectively, in premarket trading after Bernstein analyst Stacy Rasgon reiterated his bullish ratings on the two stocks. Rasgon remains “broadly cautious” with regards to the semiconductor industry, but he is upbeat about Nvidia and Broadcom as they offer “relative” protection in case overall chip demand sours. “We advocate especially for Broadcom, which while impacted by Apple issues, has a de-risked wireless trajectory, benefits from datacenter exposure, strong cash return (with a $12 billion buyback and good dividend growth), margin upside (with likely raise to targets in another couple of quarters), firepower to do a $5 billion to $10 billion bolt-on M&A deal, and is the cheapest in our coverage,” Rasgon wrote. Nvidia, he said, is exposed to fast-growing areas and has an “easier valuation versus recent history.” Broadcom shares have risen 4.6% over the past 12 months, while Nvidia’s stock has climbed 64%. The PHLX Semiconductor Index is up 26% in the past year and the S&P 500 is up 12%.

1 BUSINESS

Business News - Opportunities - Reviews

 

 

Leave a Reply