Bank of America Securities analyst Vivek Arya has reiterated their bullish stance on AVGO stock, giving a Buy rating today.
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Vivek Arya has given his Buy rating due to a combination of factors including the increasing leverage of TPUs both internally and externally. The successful launch of Gemini 3, which is fully trained on TPUs, and the potential for Google to rent out TPUs to external customers, positions Broadcom favorably in the competitive landscape. Arya highlights the expected growth in average selling prices and unit sales of TPUs, projecting a significant increase by 2026.
Furthermore, Arya notes that the TPUv7 demonstrates greater power efficiency compared to NVIDIA’s latest offerings for specific workloads, which could lead to lower total cost of ownership in certain scenarios. Despite potential risks such as Google selling TPUs directly and the introduction of MediaTek as a design partner, Arya maintains a positive outlook on Broadcom’s prospects, raising the price objective to $460, supported by expected sales growth and market conditions.
In another report released today, Aletheia Capital also reiterated a Buy rating on the stock with a $500.00 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.