Broadcom stock (NASDAQ: AVGO) experienced a bloodbath in the charts on Thursday after its earnings call, which mostly met Wall Street’s expectations, except that its Q3 gross margin was expected to dip slightly to 74%. This led to the equity tumble by nearly 12.59% on the closing bell, shedding 60.32 points in the trading session. The crash was also harsh on other semiconductor firms like Micron and others, which also fell by nearly 7% to 10%.

Despite the crash, the private wealth management firm Bernstein hiked its price prediction for Broadcom stock on the same day AVGO plunged more than 12%. Stacy Rasgon, Bernstein’s Senior Analyst covering the US semiconductors and capital equipment, wrote in a note to clients on June 4, highlighting that Broadcom stock could go much further in the indices.

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What is Bernstein’s New Price Target For Broadcom Stock?

The Bernstein analyst maintained his buy rating and kept his action as Overweight intact. He hiked AVGO’s price target to $550, citing the company’s growing revenues and earnings per share, which are more than 50%, with gross and operating margins in the 70s and 60s, respectively. The company has also delivered revenue growth of 32% over the last twelve months, with gross profit margins of 76%. All of these would act as a bullish trajectory for Broadcom stock, wrote the Bernstein analyst.

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His previous price prediction for Broadcom stock was $525. He revised and hiked the target to $550 on the day of the 12% crash. That’s an increase of $25, indicating that smart money could soon go big on AVGO. The semiconductor giant opened Friday’s trading session at $418. If his price prediction of $550 turns out to be accurate, traders can earn a profit of nearly 32%. Therefore, an investment of $1,000 could turn into $1,300+ if the price reaches the mentioned target from Bernstein.