Bank of America Securities analyst Vivek Arya has maintained their bullish stance on AVGO stock, giving a Buy rating today.
Vivek Arya has given his Buy rating due to a combination of factors including Broadcom’s growing exposure to artificial intelligence (AI) and its strong foothold in essential AI infrastructure components. Arya’s confidence is bolstered by Broadcom’s AI sales forecast of over $10 billion by FY24, marking a significant year-over-year growth. The company’s leadership in high-speed Ethernet switches is particularly notable, as it is poised to support the burgeoning demand for AI accelerator clusters, a market where Ethernet is favored for its scalability and power efficiency advantages over alternatives like InfiniBand.
Furthermore, Arya is optimistic about Broadcom’s pipeline, which includes the addition of a third major custom AI ASIC customer set to ramp up later in the year, indicating sustained growth and multi-year engagements in the consumer AI market. Coupled with Broadcom’s advancements in co-packaged optics and high-performance connectivity solutions, such as the industry’s first 3nm 200G SerDes and integrated DSPs for next-gen data transmission, Arya sees a clear path for Broadcom’s AI sales to potentially exceed $14 billion by CY26. This, along with a cyclical recovery in non-AI semiconductor markets and the acceleration of VMWare revenue, underpins the recommendation for a Buy rating.
In another report released today, Bernstein also assigned a Buy rating to the stock with a $1,600.00 price target.
AVGO’s price has also changed dramatically for the past six months – from $830.570 to $1276.000, which is a 53.63% increase.
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Broadcom (AVGO) Company Description:
Broadcom, Inc. is a technology company offering semiconductor and infrastructure software solutions. It operates through two segments: Semiconductor Solutions (includes semiconductor solution product lines and IP licensing) and Infrastructure Software (Includes mainframe, BizOps and cyber security software solutions and FC SAN business). The company was founded in 1961 and is headquartered in San Jose, CA.
