TLDR
- ARK Invest purchased 31,573 Broadcom shares worth $10.5 million on January 8th
- Goldman Sachs added Broadcom to US Conviction List with $450 price target
- Jim Cramer said he’d rather own Broadcom than Salesforce
- Shares dropped 3.2% Thursday but rebounded 3.7% Friday to $344.84
- Stock gained 49% over the past year on AI chip demand
Broadcom attracted fresh institutional buying this week. Cathie Wood’s ARK Invest purchased shares during a Thursday dip. The stock bounced back strongly on Friday.
ARK Next Generation Internet ETF bought 31,573 Broadcom shares on January 8th. The position was valued at $10.5 million based on Thursday’s closing price. It marked a new stake for the fund.
ARK timed its purchase well. Broadcom shares fell 3.2% on Thursday as AI stocks declined. The stock recovered quickly, rising 3.7% to $344.84 by Friday midday.
Jim Cramer made his preference clear on CNBC. He’d rather own Broadcom than Salesforce. The Mad Money host called CEO Hock Tan a potential winner.
“I’d rather own Broadcom, which is Hock Tan, potential winner,” Cramer said. He noted that software is getting eaten by hardware in the current market.
Goldman Sachs Adds to Conviction List
Goldman Sachs gave Broadcom a vote of confidence on January 5th. The bank added the chipmaker to its US Conviction List. It maintained a Buy rating with a $450 price target.
Goldman highlighted Broadcom’s position in the enterprise silicon market. The bank sees strength in custom chip design capabilities. AI demand continues to drive interest in the stock.
UBS raised its price target in December. The firm bumped its target to $475 from $472. It kept a Buy rating on the stock.
Broadcom shares gained 49% over the past year. The company benefits from designing custom chips for major tech customers. AI infrastructure buildout has fueled recent growth.
ARK Reduces Palantir Position
ARK Invest sold 58,741 Palantir shares worth $10.4 million. The fund now holds 376,629 Palantir shares. Valuation concerns may have prompted the sale.
The ARK Next Generation Internet ETF is the only ARK fund holding Broadcom. Wood’s firm manages multiple sector-focused ETFs. The purchase adds semiconductor exposure to the portfolio.
Cramer praised CEO Hock Tan as one of the best technology executives. Tan has led Broadcom through impressive growth. The company expanded its software capabilities with the VMware acquisition.
Broadcom closed at $332.48 on Thursday before rebounding Friday. ARK’s purchase occurred during the Thursday dip. The fund positioned itself ahead of Friday’s gains.
