Why Broadcom Stock Jumped Today

After sell-offs yesterday, Broadcom (NASDAQ: AVGO) stock rebounded in Friday's trading. The company's share price ended the day's trading up 5.4%. Meanwhile, the S&P 500 (SNPINDEX: ^GSPC) and the Nasdaq Composite (NASDAQINDEX: ^IXIC) climbed 1.8% and 2.1%, respectively.

Broadcom stock posted significant gains amid a day of rebound trading for the broader market. The company's share price also appears to have gotten a boost from new analyst coverage -- even though that coverage arrived with a lowered one-year price target.

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Broadcom stock rises on rebound day for the market

Stocks sold off yesterday after the White House announced that the effective tariff rate on China was actually 145% -- significantly above the already high rate that President Trump had cited in a message posted to social media on Wednesday. But the market saw substantial recovery momentum in Friday's trading, and Broadcom's valuation rose amid the recovery rally.

However, despite today's gains, the stock is still down roughly 22% in 2025. The company is now valued at roughly 27 times this year's expected earnings.

Citi stays bullish on Broadcom despite lowering its price target

Before the market opened this morning, Citigroup analyst Christopher Danely published new coverage, lowering his one-year price target on Broadcom stock from $220 per share to $210 per share. The analyst now thinks that a recession in the U.S. is likely and expects that tariffs on China will have a significant impact on earnings and valuation multiples for semiconductor stocks.

On the other hand, Citi's lead analyst on Broadcom still retained a buy rating on the stock. If shares were to hit Danely's new price target, it would still mean a roughly 15% bump above their current valuation level.

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Citigroup is an advertising partner of Motley Fool Money. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.