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Broadcom (NASDAQ: AVGO) stock posted explosive gains in Wednesday's trading amid a dramatic recovery for the broader market. The company's share price closed at 18.3% in the daily session. Meanwhile, the S&P 500 (SNPINDEX: ^GSPC) and the Nasdaq Composite (NASDAQINDEX: ^IXIC) ended the day's trading with gains of 9.5% and 12.1%, respectively.
Stocks surged today after President Trump announced a 90-day pause on reciprocal tariffs. Excluding China, imported goods from all other countries will be taxed at a 10% at U.S. ports. The move represents a significant moderation compared to the administration's previous tariff policies, and investors reacted to the bullish development by buying back into stocks.
Trump's 90-day tariff delay just powered a big recovery for Broadcom stock
Broadcom and other artificial intelligence (AI) stocks were hit with big sell-offs, even though the Trump administration's tariff policies included exceptions for semiconductors. But Trump's recent announcement that he has implemented a 90-day pause on reciprocal tariffs has helped to power a big rebound rally for AI stocks. With the 90-day postponement opening the door for the U.S. to reach new trade agreements with other countries, it's possible concerns about global supply chains could be further mitigated.
TD Cowen stays bullish on Broadcom despite lowering price target
In a note published before the market opened today, TD Cowen lowered its one-year price target on Broadcom stock from $265 per share to $200 per share due to macroeconomic pressures related to tariff polices. On the other hand, the firm maintained its buy rating on the stock.
Even after Broadcom's big rally today, Cowen's new price target on the stock still implies upside of roughly 11%.
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