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Broadcom to report ‘beat and raise’ quarter on AI strength, says Citi

Citi analyst Christopher Danely keeps a Buy rating on Broadcom with a $1,560 price target ahead of the company’s fiscal Q3 report on June 12. The analyst expects the company to report and guide above consensus estimates, driven by higher artificial intelligence sales and accretion from the VMWare acquisition. Broadcom raised its fiscal 2024 AI revenue forecast from roughly $8.0B to over $10.0B during the February quarter earnings, and Citi expects the company to raise its AI forecast again to $11B as the third AI customer ramps. The firm sees upside from AI strength and earnings accretion from the VMware acquisition.

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