Broadcom, AMD Lead Chip Shares Larger Monday on Anticipation of AI-Pushed Positive aspects

Chip shares surged Monday, led by Broadcom (AVGO) and Superior Micro Gadgets (AMD) following bullish calls from analysts anticipating positive aspects pushed by rising demand for synthetic intelligence (AI).

Shares of Broadcom added 5.5%, main positive aspects on the S&P 500 after UBS analysts lifted their AI income estimates for the corporate in fiscal 2026 and 2027 by 20% and 40%, respectively. The analysts maintained a “purchase” ranking for the inventory and raised their worth goal to $270 from $220, implying a 16% premium from Monday’s closing worth of $232.35.

UBS will not be the one agency bullish on Broadcom, with the entire 14 analysts polled by Seen Alpha holding a “purchase” or equal ranking for the inventory. Nonetheless, their common worth goal is a bit decrease at $249, suggesting 7% upside. Broadcom shares have already greater than doubled in worth this 12 months.

In the meantime, AMD shares jumped 4.5% to $124.60 Monday after analysts at Rosenblatt referred to as it a “high choose” for the primary half of 2025, noting its rising market share and AI-driven potential, in addition to its chance to learn from a “broader non-AI restoration exiting 2025.” They maintained a “purchase” ranking and worth goal of $250 for the inventory, above the common of round $185 compiled by Seen Alpha. Regardless of Monday’s positive aspects, AMD shares have misplaced about 15% in 2024.

Shares of different chipmakers, together with Nvidia (NVDA), Qualcomm (QCOM), and Intel (INTC), additionally rose Monday, with the PHLX Semiconductor Index (SOX) climbing about 3%.