J.P. Morgan analyst Harlan Sur has reiterated their bullish stance on AVGO stock, giving a Buy rating on December 5.
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Harlan Sur has given his Buy rating due to a combination of factors that highlight Broadcom’s strong position in the AI market and its potential for significant revenue growth. The company is expected to exceed revenue and earnings expectations, driven by robust demand for its AI products, including custom ASICs and networking solutions. Broadcom’s AI revenues are projected to reach $20-21 billion in FY25, a substantial increase from the previous year, with further growth anticipated in FY26 as new AI products and programs ramp up.
Additionally, Broadcom’s non-AI semiconductor business is showing signs of improvement, and its software infrastructure business, particularly through VMware, continues to perform well. The company’s strong free cash flow growth and capital return outlook, including expected dividend increases, further support the positive rating. Broadcom’s diversified market exposure and leading position in AI infrastructure spending trends make it a top pick in the semiconductor sector, reinforcing the Buy recommendation.
In another report released on December 5, Mizuho Securities also reiterated a Buy rating on the stock with a $435.00 price target.
Based on the recent corporate insider activity of 63 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.