Broadcom initiated with a Hold at HSBC

HSBC initiated coverage of Broadcom (AVGO) with a Hold rating and $160 price target Given the company’s increasing artificial intelligence revenue exposure, Broadcom shares have re-rated from 18-times to the current price-to-earnings ratio of 27-times on fiscal 2025 estimates, the analyst tells investors in a research note. However, the firm does not believe Broadcom shares can re-rate higher as it approaches a peak multiple and trades at a higher valuation compared to peers like Nvidia (NVDA) and AMD (AMD). As such, HSBC sees a less attractive risk/reward for Broadcom.