Broadcom, the Technology sector company, was revisited by a Wall Street analyst today. Analyst William Power from Robert W. Baird maintained a Buy rating on the stock and has a $420.00 price target.
Meet Samuel – Your Personal Investing Prophet
- Start a conversation with TipRanks’ trusted, data-backed investment intelligence
- Ask Samuel about stocks, your portfolio, or the market and get instant, personalized insights in seconds
William Power has given his Buy rating due to a combination of factors tied to Broadcom’s AI momentum and earnings potential. He highlights accelerating demand for Broadcom’s v7 custom ASICs powering Google’s TPU infrastructure, which is being adopted for AI workloads by major customers such as OpenAI, Apple, Meta, and Anthropic, driving a sharp increase in expected AI-related revenue.
Power notes that projected AI revenue of roughly $65 billion this year, along with a five-year compound growth outlook of about 45%, supports the potential for EPS to surpass $30 by 2030 even after factoring in possible share shifts to Mediatek in inferencing. He also emphasizes that, under conservative assumptions where Broadcom loses all v7 inferencing share in 2027, TPU revenue for Broadcom would still rise more than 55%, while a scenario without that share loss would imply another year of AI revenue more than doubling, reinforcing his favorable stance on the stock.
In another report released on February 17, Citi also maintained a Buy rating on the stock with a $458.00 price target.
Based on the recent corporate insider activity of 64 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.