Apple and Broadcom shares keep hitting records. Why each have more room to run
Apple and Broadcom shares traded above their record closes on Wednesday. New research shows investors why two Club holdings should be more bullish. No. 1 smartphone: Apple shares rose Wednesday after Counterpoint Research said the company is on track to dethrone Samsung as the world’s top smartphone maker in 2025; this is a feat not seen in more than a decade. The tech giant is expected to sell 243 million iPhones in 2025, compared to Samsung’s 235 million. Counterpoint analysts attributed the successful launch of Apple’s latest iPhone 17 series to share gains as device shipments rose 10% year over year in 2025. While shipments, the number of devices that sellers send to retailers, differ from final sales, the numbers are still significant. They can provide valuable insight into smartphone demand and sales expectations. In 2025, Apple is expected to have a 19.4% share of the global smartphone market, while Samsung is expected to reach 18.7%. AAPL YTD mountain Apple YTD We’re not surprised to hear about Apple’s market dominance. After all, the iPhone 17 series has repeatedly shown promising signs since its September launch. Jim Cramer called Apple’s newest flagship device a huge bargain, considering the trade-in values and carrier subsidies of previous models. “We were saying the iPhone 17 was incredible,” Jim previously said. “As long as Apple makes the best products, people will buy them,” he added. The impressive iPhone 17 launch is partly why the stock has soared to all-time highs and even joined the $4 trillion market cap club last month. Given the iPhone 17’s consistent signs of success, we could see the upward trend in Apple shares continuing through the end of 2025. However, the Club is still waiting for more clarity on Apple’s AI strategy, which has been weak so far. Exciting new features like the introduction of long-latency conversational Siri could help boost the iPhone’s upgrade cycle even further. Still, we think Apple is in a unique position to leverage AI because its massive installed customer base makes the company a perfect AI partner for those looking to expand its services to a wider audience. This means Apple can make money from AI without spending too much. The club maintains its long-held “buy yourself, don’t trade” thesis on shares. Praise from Wall Street: Broadcom shares hit all-time highs on Wednesday after Goldman Sachs raised its price target to $435 from $380. Analysts who maintain a buy rating expect Broadcom’s next quarter to be solid and “strong momentum will drive AI revenue up” in 2026. Broadcom will report its fiscal 2025 fourth quarter on December 11. “We expect sustained AI strength in Q4 with above-Street guidance in Q1 given strong spending from key customers – and updated AI revenue forecast of over 100% on an annualized basis in FY26,” the analysts wrote in a note on Tuesday. The “major customers” reference likely points to more AI spending by the hyperscalers, meaning an increase in Broadcom sales. Goldman estimates that Broadcom’s AI revenue will see a 128% increase in fiscal 2026 compared to the previous year. Broadcom shares rose as Wall Street positioned the chipmaker as a play against Alphabet’s growing AI dominance, thanks to its role in co-designing Google’s custom Tensor Processing Units (TPUs) that power Broadcom’s standout new Gemini 3 AI model. AVGO YTD high Broadcom YTD We agree with Goldman: Even though Broadcom shares are trading at record highs, the bullish sentiment is higher. Big tech companies increasing capital spending on AI infrastructure means more sales for Broadcom’s networking and custom chip businesses. This is the main reason why the club opened a position in the stock. Additionally, this week’s report that Club name Meta Platforms is evaluating Google TPUs for data centers in 2027 is positive for Broadcom. Alphabet’s deeper commitment to artificial intelligence could boost sales of custom chips that Broadcom helps design. Club has a 2-equivalent rating on the stock and a $415 price target on the shares. (Jim Cramer’s Charitable Trust is long AAPL, AVGO, META. See here for a full list of stocks.) When you subscribe to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trading alert before buying or selling a stock in his charitable foundation’s portfolio. If Jim talked about a stock on CNBC TV, he waits 72 hours after issuing the trading alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH THE DISCLAIMERS. NO CIVIL OBLIGATIONS OR DUTIES EXIST OR SHALL BE RESULTING FROM YOUR RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULT OR PROFIT CAN BE GUARANTEED.
