Key Points
Broadcom (NASDAQ: AVGO) shares rose as much as 4.1% on Tuesday, with a 3.1% increase noted at 2:46 p.m. ET. This surge was triggered by reports that Intel plans to raise CPU prices by 10% this fall, marking Intel’s third price hike in 2023.
Additionally, Nvidia is expected to increase prices by over 15% on certain chips, effective early next year. The ongoing rise in memory chip costs is impacting the AI sector, causing many tech companies to reassess their profit margins and pricing strategies.
Broadcom currently boasts an impressive year-over-year revenue increase of 86%, with AI-related revenue seeing a 221% rise. The company’s stock is priced at 32 times forward earnings and 19 times next year’s expected earnings.
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