Analyst Christopher Rolland of Susquehanna reiterated a Buy rating on Broadcom (AVGO – Research Report), retaining the price target of $250.00.
Christopher Rolland has given his Buy rating due to a combination of factors that highlight Broadcom’s strong position in the AI market and its promising growth prospects. The company reported better-than-expected results and guidance, driven by significant AI revenue growth, which reached $4.1 billion in the first quarter, surpassing previous guidance. This growth is attributed to robust shipments of networking solutions, with Ethernet becoming a standard for large training clusters. Looking forward, Broadcom anticipates AI revenues to increase further in the second quarter, supported by its strategic engagements with major hyperscale customers like Google, Meta, and ByteDance.
Additionally, Broadcom’s expansion into new hyperscale opportunities with companies such as Apple and OpenAI, along with its focus on innovative technologies like the industry’s first 2nm AI XPU and next-gen Tomahawk switches, underscores its commitment to maintaining a competitive edge. Despite some challenges in non-AI segments, the company is experiencing a gradual recovery, with increased bookings and a strong performance in Infrastructure Software. These factors collectively contribute to Rolland’s positive outlook on Broadcom’s stock, reinforcing his Buy rating.
In another report released today, Bernstein also maintained a Buy rating on the stock with a $250.00 price target.
Based on the recent corporate insider activity of 62 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.