UBS analyst Timothy Arcuri has maintained their bullish stance on AVGO stock, giving a Buy rating today.
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Timothy Arcuri has given his Buy rating due to a combination of factors, primarily focusing on Broadcom’s strategic partnerships and anticipated revenue growth. The recent announcement of a partnership with OpenAI has led to adjustments in revenue estimates, suggesting significant potential for earnings growth in the coming years. Arcuri highlights that despite initial appearances, large-scale infrastructure deployments are expected to be back-end loaded, which could result in substantial earnings per share by 2027 and beyond.
Additionally, the projected revenue from OpenAI, estimated to be around $90 billion between the second half of 2026 and 2029, supports a positive outlook. Broadcom’s involvement in AI hardware, particularly with custom ASICs, is expected to drive higher average selling prices and maintain robust gross margins. Furthermore, updates to Broadcom’s business with major players like Google and META, alongside increased networking opportunities, reinforce the potential for sustained growth. These factors collectively contribute to Arcuri’s optimistic view and the upward adjustment of the price target to $415.
In another report released today, Barclays also maintained a Buy rating on the stock with a $450.00 price target.