Broadcom’s Buy Rating Upheld Amidst Strong AI ASIC Market Leadership and Revenue Growth Projections

Harlan Sur, an analyst from J.P. Morgan, reiterated the Buy rating on Broadcom (AVGO – Research Report). The associated price target remains the same with $1,700.00.

Harlan Sur has given his Buy rating due to a combination of factors that highlight Broadcom’s leadership and innovation in the AI ASIC market. Sur points out Broadcom’s significant advancements in custom chip (ASIC) development, underscored by its successful engagements with tech giants like Google and Meta. Broadcom’s recent achievements include securing contracts to produce next-generation 3nm AI ASIC chips for both companies. These developments are expected to substantially boost Broadcom’s revenues in the current year, with a forecast of over $9 billion from Google and Meta combined, marking a significant increase from the previous year’s figures.

Furthermore, Sur’s optimism is bolstered by the potential for Broadcom to become Meta’s multi-billion dollar AI ASIC customer by 2025, as well as anticipated strong demand for Broadcom’s other AI-driven semiconductor products. The financial implications of these factors are twofold: a substantial hike in total AI semiconductor shipments to the tune of $10-$12 billion this year and the possibility of positive revisions to Broadcom’s earnings per share as the year progresses. These elements, together with Broadcom’s strategic positioning and technological prowess, underpin Sur’s confidence in recommending Broadcom’s stock as a Buy.

In another report released yesterday, Deutsche Bank also initiated coverage with a Buy rating on the stock with a $1,500.00 price target.

TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.

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.