Broadcom, the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Christopher Danely from Citi reiterated a Buy rating on the stock and has a $415.00 price target.
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Christopher Danely has given his Buy rating due to a combination of factors that highlight Broadcom’s promising growth prospects. One of the key reasons is the strategic partnership between Anthropic and Google, which is expected to significantly benefit Broadcom. The expansion of Google’s TPU chips usage by Anthropic is projected to bring substantial revenue to Broadcom, with estimates suggesting a $10 billion revenue opportunity per gigawatt of capacity.
Additionally, the increasing adoption of Google’s TPUs by other major companies like Apple and OpenAI further strengthens Broadcom’s market position. These developments are anticipated to drive significant growth in Broadcom’s AI business, with expectations of its AI sales quadrupling by 2027. Danely’s Buy rating is supported by the belief that these factors are already reflected in the company’s guidance, and the stock’s price target is set at $415, aligning with its recent trading range.
Danely covers the Technology sector, focusing on stocks such as Micron, Intel, and Advanced Micro Devices. According to TipRanks, Danely has an average return of 13.4% and a 61.11% success rate on recommended stocks.
In another report released on October 26, Mizuho Securities also maintained a Buy rating on the stock with a $435.00 price target.