Broadcom Stocks Surge Amid Market Recovery Despite Tariff Concerns

NEW YORK, NY — April 11, 2025 — Shares of Broadcom (NASDAQ: AVGO) surged 5.4% in trading on Friday after a day of sell-offs earlier in the week, indicating a recovery in the broader market. The stock, which closed at $181.63, follows a 22% decline for the year as investor concerns over trade tariffs hurt tech stocks.

The recovery came as the S&P 500 rose 1.8% and the Nasdaq Composite increased 2.1% on the same day. Despite this rebound, Broadcom’s valuation remains under pressure due to recent developments in U.S.-China trade relations.

On Thursday, the White House disclosed that the effective tax rate on Chinese imports stands at 145%, significantly higher than the rate previously indicated by President Trump. The announcement contributed to the previous day’s market pullback but led to a rebound on Friday as investors reacted positively to the recent trading gains.

Christopher Danely, an analyst at Citigroup, released new coverage for Broadcom with a revised one-year price target lowered from $220 to $210. Danely cited an expected recession in the U.S. and the anticipated impact of tariffs on earnings, particularly in the semiconductor sector. However, he maintained a buy rating, indicating confidence in the stock’s potential for growth despite the lowered price target.

Danely’s assessment suggests that if Broadcom shares reach the new price target, they would yield a significant 15% return based on current valuation levels. This positive sentiment has emerged amid heightened scrutiny of market stability amid global trade tensions.

While the company is seen as a reliable investment within the tech sector, it still grapples with volatilities tied to trade policies. The semiconductor industry, to which Broadcom belongs, is particularly susceptible to the fluctuations caused by these tariff announcements.

“Investors need to prepare for continued fluctuations in the market due to external factors like tariffs,” said Danely. “However, for those with a long-term investment strategy, there is still potential for significant returns with stocks like Broadcom.”

The generalized market recovery signals optimism among investors as they anticipate negotiations between the U.S. and its trading partners might ultimately alleviate ongoing tariff pressures. This week’s performance is seen as a beacon of resilience amid economic uncertainties and continued geopolitical tensions.

As analysts monitor the stock closely, they emphasize the importance of remaining informed about developments in trade policies, advising investors to consider the broader implications of tariffs when making investment decisions.