Morgan Stanley lowered the firm’s price target on Broadcom (AVGO) to $246 from $265 and keeps an Overweight rating on the shares. The DeepSeek release highlights evolutionary innovations in AI, “some of which may be deflationary,” the analyst tells investors. While the magnitude of the reaction to DeepSeek’s release was “surprising,” the stock market reaction is “probably more important than the cause” and could bring further export controls or reduce spending enthusiasm, adds the analyst, who is trimming price targets among semiconductor suppliers exposed to AI, but remains positive on the group.
Invest with Confidence:
- Follow TipRanks' Top Wall Street Analysts to uncover their success rate and average return.
- Join thousands of data-driven investors – Build your Smart Portfolio for personalized insights.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on AVGO:
- DeepSeek will create ‘faster unlock’ of chip demand, says JPMorgan
- DeepSeek Creates Panic and Hits Tech Stocks, But This Too Shall Pass
- Baird says buy Nvidia and AMD on the DeepSeek selloff
- DeepSeek Shockwaves Turn Market Dip Into Tech Stock Treasure Hunt
- Chinese AI Startup DeepSeek Gets Hit by Cyberattacks