Benchmark recommends investors take advantage of near-term Broadcom volatility

Benchmark says Broadcom’s (AVGO) earnings report was “being looked to as some sort of savior of the AI momentum trade” following a week of “incredibly poor performance” in Nvidia’s (NVDA) stock price and most AI related names. However, Broadcom “delivered only a tepid beat for the July quarter” and provided guidance that was just shy of the consensus estimates. While the company’s report was “solid, without any material soft points,” its AI business lacked the clear upside momentum the Street was looking for, the analyst tells investors. The firm recommends investors take advantage of the near-term share price volatility with Broadcom remaining “a key vehicle for participation in the industry’s AI adoption.” Benchmark reiterates a Buy rating and $210 price target on the shares.