Broadcom, the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Christopher Rolland from Susquehanna reiterated a Buy rating on the stock and has a $400.00 price target.
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Christopher Rolland has given his Buy rating due to a combination of factors that highlight Broadcom’s strategic positioning and growth potential. The company is expanding its total addressable market in the AI sector by offering rack-level solutions, which could lead to significant revenue and profit growth. This shift positions Broadcom to compete more effectively with industry leaders like NVIDIA and AMD, potentially accelerating its AI revenue growth.
Furthermore, Broadcom’s CEO has a new performance-based award that indicates a strong focus on achieving substantial AI revenue growth, with targets suggesting a compound annual growth rate of over 20% to 30%. Despite the loss of the Wi-Fi/BT chip business in Apple’s new iPhone lineup, which could impact short-term revenue, the long-term growth prospects in AI and other areas support a positive outlook for the company. These factors collectively underpin Rolland’s optimistic Buy rating for Broadcom.
According to TipRanks, Rolland is a 5-star analyst with an average return of 17.0% and a 56.26% success rate. Rolland covers the Technology sector, focusing on stocks such as Broadcom, Marvell, and ON Semiconductor.
In another report released yesterday, Mizuho Securities also reiterated a Buy rating on the stock with a $410.00 price target.