Broadcom’s Strong AI Networking Performance and Growth Prospects Drive Buy Rating

Morgan Stanley analyst Joseph Moore has maintained their bullish stance on AVGO stock, giving a Buy rating today.

Joseph Moore has given his Buy rating due to a combination of factors, primarily driven by Broadcom’s strong performance in AI networking and the promising outlook for future growth. The company’s AI revenue has been bolstered by significant growth in networking applications, which has outpaced expectations and contributed to a robust financial performance.
Moreover, Broadcom’s guidance for AI revenue is notably higher than consensus estimates, indicating strong confidence in sustained growth. While the processor segment has shown modest growth, the anticipated acceleration in processor sales and the continued strength in networking are expected to drive future performance. These factors, combined with positive commentary on long-term AI prospects, underpin Moore’s optimistic outlook for Broadcom.

In another report released today, Melius Research also maintained a Buy rating on the stock with a $305.00 price target.

Based on the recent corporate insider activity of 57 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.