Key Points

A researcher published an update on stocks involved in the artificial intelligence segment. Broadcom is among the titles it's quite bullish on. 10 stocks we like better than Broadcom ›

Broadcom(NASDAQ: AVGO) stock was a winner on a fairly forgettable Monday for the market. During a session when the benchmark S&P 500 index could only eke out a less than 0.1% gain, Broadcom added nearly 1% to its share price. The company largely has a new research report to thank for that.

Buy AI, says researcher

Before market open, Mizuho Securities published an update on a select group of stocks involved in the market for artificial intelligence (AI) server products. It timed this to coincide with the upcoming quarterly earnings report scheduled to be published by Broadcom, a notable player in that segment.Image source: Getty Images.

Peer companies reporting in the very near future are the segment's 800-pound gorilla, Nvidia, as well as Credo Technology Group and retailer Dell Technologies.

According to reports, Mizuho's analysts believe that intensifying demand for AI solutions and activity throughout the supply chain suggest prosperous times are coming for such companies. As for Broadcom specifically, the researcher believes the company should see increased take-up of its custom chip solutions from such tech heavyweights as Alphabet's Google and Apple.

In the report, Mizuho raised its price targets on several of the covered stocks, including Dell but excluding Broadcom. Nevertheless, it reiterated its outperform (read: buy) recommendation on the latter stock, as well as its $250-per-share price target.

A lasting trend

The swing toward AI is not a short-term fad or a fluke; it's very much a strong and sustainable movement toward significantly more powerful (and useful) computing. Given that, I think Mizuho's quite bullish take on a range of sector names is justified, particularly with the well-performing and cleverly managed Broadcom. This stock feels very much like a buy to me.

Should you invest $1,000 in Broadcom right now?

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Eric Volkman has positions in Apple. The Motley Fool has positions in and recommends Alphabet, Apple, and Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.

Why Broadcom Stock Ticked Higher on Monday was originally published by The Motley Fool

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