Analyst Aaron Rakers from Wells Fargo maintained a Hold rating on Broadcom (AVGO – Research Report) and keeping the price target at $230.00.
Aaron Rakers has given his Hold rating due to a combination of factors influencing Broadcom’s current and future performance. While there is optimism about Broadcom’s role in AI infrastructure and networking, with expected growth in AI networking revenue and custom AI ASICs, there are also concerns that temper this enthusiasm. The potential shift by Apple to internally developed chips poses a risk to Broadcom’s wireless revenue, as Apple is a significant customer.
Furthermore, while Broadcom is expected to benefit from AI-driven demand and Google’s significant capital expenditures, the cyclical downturn in non-AI semiconductors and the uncertainty surrounding future orders from major clients like Microsoft and Google contribute to a cautious outlook. These mixed signals, with both promising growth areas and potential challenges, underpin the decision to maintain a Hold rating on Broadcom’s stock.
AVGO’s price has also changed moderately for the past six months – from $161.390 to $197.800, which is a 22.56% increase.