Harlan Sur, an analyst from J.P. Morgan, reiterated the Buy rating on Broadcom. The associated price target remains the same with $400.00.
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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 growth in its AI segment, with significant demand for its custom AI XPU business and high-performance networking portfolio. This growth is supported by Broadcom’s strategic focus on AI, where they are on track to achieve substantial revenue targets, driven by their proven ability to exceed expectations.
Additionally, Broadcom is expanding its offerings by moving up the technology stack, providing full AI rack scale deployments, which, although lower in margin, contribute positively to gross and operating profits. The company is also seeing positive trends in non-AI semiconductor businesses, with promising developments in broadband, server storage, and enterprise networking. Broadcom’s diversified business model, strong execution in product development, and exposure to secular growth trends in AI and infrastructure make it a top pick in the semiconductor sector.
In another report released today, Bernstein also maintained a Buy rating on the stock with a $400.00 price target.