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Broadcom (NASDAQ:AVGO) stock is up big today after one Bank of America analyst pegged the chipmaker as the next trillion-dollar stock. Indeed, according to BofA’s Vivek Arya, Broadcom has a path to “join the trillionaires club.”

BofA raised its price target for AVGO stock on Thursday to $2,000 per share from $1,680 while maintaining its “buy” rating. At its current share price of around $1,680, this represents nearly 20% upside.

At a market capitalization of over $770 billion, Broadcom is just behind the giants of the tech world. This, of course, includes the likes of Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), and Meta Platforms (NASDAQ:META), all of which have market caps of more than $1 trillion.

For Arya, Broadcom’s various compelling product lines and robust semiconductor sales may lift the company to the highest echelons of tech companies.

“We rate Broadcom Buy due to its high-quality diversified exposure to secular product cycles in the smartphone, cloud data center, telecom and enterprise storage markets,” Arya said.

Of course, the company’s financials are also a point of strength for Broadcom. Its commitment to paying down its debt is also a notable point of merit for the analyst.

“With 45%+ EBITDA/FCF margins, Broadcom is among the most profitable semiconductor companies, which is likely to continue to drive strong cash returns,” said the analyst.

Broadcom Stock Soars on Strong Q2 Earnings

Today’s news comes as a clear response to Broadcom’s second-quarter earnings report yesterday. Indeed, the company posted EPS of $10.96 compared to $10.84 expected and revenue of $12.49 billion versus 12.03 billion expected. Overall revenue climbed 43% year-over-year (YOY) during Q2, per CNBC.

Broadcom also announced that it will perform a 10-for-1 stock split on July 12. At its current share price of $1,680 per share, AVGO stock will trade for about $168 post-split.

The company, perhaps unsurprisingly, focused largely on the artificial intelligence (AI) applications of its devices. Some $3.1 billion in sales came from AI products according to Broadcom.

“Talking of AI accelerators, you may know our hyperscale customers are accelerating their investments to scale up the performance of these clusters,” said Broadcom CEO Hock Tan. “And to that end, we have just been awarded the next-generation custom AI accelerators for these hyperscale customers of ours.”

Broadcom stock has enjoyed a gangbuster year so far in 2024. Indeed, AVGO is up 55% year-to-date (YTD) as one of the big winners of this year’s AI crazy. Given its recent praise and earnings results, the rally may not yet be over, either.

On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.