11:20 AM EST, 12/13/2024 (MT Newswires) -- Broadcom's ( AVGO ) in-line fiscal Q4 will provide relief versus low nearer term expectations, Morgan Stanley said in a note Friday.

"While the stock never really traded down on the perceptions of nearer term weakness, given the considerable enthusiasm for [artificial intelligence application-specific integrated circuits] the stock has clearly been held back, and as we return to longer term momentum we expect catalyst driven investors to come back to the stock," Morgan Stanley said.

The investment bank said Broadcom ( AVGO ) continues to be "one of the most compelling ways" to play AI semiconductors over the next two to three years.

"The lack of near term momentum actually increases our enthusiasm as the near term bar is lower than peers," the firm said.

Morgan Stanley boosted its price target on the company to $233 from $180 and maintained its overweight rating.

Broadcom ( AVGO ) shares soared 20% in recent Friday trading.

Price: 216.05, Change: +35.39, Percent Change: +19.59