Analyst Harlan Sur of J.P. Morgan maintained a Buy rating on Broadcom (AVGO – Research Report), retaining the price target of $250.00.
Harlan Sur has given his Buy rating due to a combination of factors that highlight Broadcom’s strong performance and future growth potential. Broadcom reported impressive quarterly results, with revenues in AI semiconductors and software surpassing expectations, offsetting weaker non-AI semiconductor sales. The company’s guidance for the upcoming quarter also exceeded market expectations, driven by robust demand in AI networking and the early adoption of Google’s TPU v6 3nm ASIC training chip.
Furthermore, Broadcom’s expanding pipeline of AI ASIC design wins, including new engagements with prominent companies like SoftBank/ARM and OpenAI, underscores its leadership in the AI infrastructure market. The company’s strategic focus on custom ASIC silicon programs and rack-level designs offers significant differentiation and efficiency gains. Additionally, Broadcom’s diversified portfolio and successful upselling in its infrastructure software business contribute to its stable revenue growth, even amid macroeconomic volatility. These factors, combined with strong cash flow generation and a positive outlook for AI revenue growth, support the Buy rating and a price target of $250.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $275.00 price target.
Based on the recent corporate insider activity of 62 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AVGO in relation to earlier this year.