Harlan Sur, an analyst from J.P. Morgan, reiterated the Buy rating on Broadcom. The associated price target was raised to $325.00.
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Harlan Sur has given his Buy rating due to a combination of factors that highlight Broadcom’s strong position in the market. The company is experiencing robust demand in its AI business, particularly from inferencing workloads, which suggests potential growth beyond previous forecasts. This demand is complemented by Broadcom’s advancements in product technology, such as the timely development of its 2nm 3.5D AI XPU products, which are expected to enhance its market offerings significantly.
Additionally, Broadcom is witnessing a gradual recovery in its non-AI semiconductor business, which is reflected in positive order trends. The sustained growth in its VMware business also contributes to the company’s positive outlook, with expectations of reaching significant revenue milestones by 2026/2027. Furthermore, Broadcom’s focus on reinvesting in AI growth opportunities rather than pursuing mergers and acquisitions is seen as a strategic move to capitalize on its strengths. These factors, combined with expanding operating margins and strong revenue growth prospects, underpin Sur’s Buy rating on Broadcom’s stock.
In another report released yesterday, Mizuho Securities also reiterated a Buy rating on the stock with a $315.00 price target.
Based on the recent corporate insider activity of 63 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.