Broadcom Inc. (NASDAQ:AVGO) skyrocketed more than 20% during Friday morning trading, hitting all-time highs after its fiscal fourth-quarter earnings blew past Wall Street estimates.

The semiconductor giant's growth narrative is now turbocharged by a massive artificial intelligence (AI) opportunity, with analysts projecting a multibillion-dollar windfall in the years ahead.

The stock’s surge catapulted Broadcom into the exclusive trillion-dollar market cap club, placing it as the eighth-largest publicly traded company, just behind Tesla Inc. (NASDAQ:TSLA).

For context, the trillion-dollar elite is rarefied territory, shared only by the “Magnificent Seven” tech giants.

Is Broadcom The Eighth Magnificent Tech Stock?

December To Remember: Broadcom Eyes Record Month Since IPO

With Friday’s spike, Broadcom's stock has already rallied 33% in December, marking its strongest monthly performance since going public in 2009.

The semiconductor heavyweight has now climbed an impressive 95% year-to-date, securing the title of the 10th-best-performing stock in the S&P 500 for 2024 thus far.

When considering combined returns for 2023 and 2024, Broadcom ranks seventh in the benchmark index.

Read Also: Nvidia, AMD, Taiwan Semi Gain As Broadcom’s Q4 Performance Sparks Sector-Wide Surge

Why Analysts Love Broadcom

Bank of America’s analyst Vivek Arya reiterated a “Buy” rating on Broadcom following the quarterly report, boosting the 12-month price target from $215 to $250 and hinting at a potential 15% upside from current levels.

Arya’s optimism stems from three main drivers:

"Broadcom's AI-driven growth potential and diversified base position it as one of the best opportunities in the chip sector," Arya said in a note, justifying their upward revision of earnings per share in fiscal year 2025 and 2026 by 5% and 3%, respectively.

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