The Chinese government’s delay in approving Broadcom’s (NASDAQ:AVGO) planned acquisition of cloud computing company VMware (NYSE:VWM) may be politically motivated, reports suggest. According to CNBC’s David Faber, the approval delay, coupled with the new restrictions on Nvidia chips, all make the speculations probable, especially since the Chinese government hasn’t provided a clear cause.
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Broadcom CEO Hock Tan had recently met with Chinese officials in an attempt to gain clearance for the VMware megadeal. During the meeting, Tan is reported to have “hammered out” a deal for VMware’s planned purchase. As a result, Broadcom still expects the deal to go through before the November 26 deadline.
AVGO’s shares declined marginally in Friday’s after-hours trading session. So far this year, the stock has added over 67% to its price. On the other hand, VM’s shares saw a slight uptick in after-hours trading.
What is the Forecast for AVGO Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AVGO stock based on 14 Buy, two Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AVGO price target of $977.14 per share implies 2.05% upside potential.
