Why Broadcom, Taiwan Semiconductor Manufacturing, and Arista Networks Rallied Even on a Down Day for the Nasdaq
Shares of semiconductor and data center infrastructure stocks (NASDAQ: AVGO), Taiwan Semiconductor Manufacturing (NYSE: TSM), and Arista Networks (NYSE: ANET) were all rallying today, up 3.2%, 3.2%, and 4.4%, respectively, as of 3:39 p.m. EDT.
While these gains may not have been extremely eye-opening, they were in the context of the Nasdaq Composite index being down around 0.65% at that time. These three are large components of that index, so to see them defying their peers is notable.
The divergence is likely due to one large tech giant significantly raising its full-year outlook for capital spending, most of which will go to artificial intelligence (AI) data centers. Fears of a large AI spending war among the very biggest tech giants caused those stocks to plunge today, but the increased spending should be a boon for these infrastructure players.
Source Fool.com
Broadcom Ltd. Stock
The stock is an absolute favorite of our community with 42 Buy predictions and no Sell predictions.
As a result the target price of 1380 € shows a slightly positive potential of 7.51% compared to the current price of 1283.6 € for Broadcom Ltd..
