Broadcom’s Strong Performance and Future Potential Justify Buy Rating

William Blair analyst Sebastien Naji has reiterated their bullish stance on AVGO stock, giving a Buy rating today.

Sebastien Naji has given his Buy rating due to a combination of factors that highlight Broadcom’s strong performance and future potential. The company reported impressive revenue growth in its fiscal second quarter, driven by robust demand in AI-related sectors, particularly in ASICs and Ethernet networking, as well as in its software division, which benefited from VMware customer migrations. This diversified growth profile positions Broadcom well to capitalize on secular trends in AI and networking.
Furthermore, Broadcom’s guidance for the upcoming quarter suggests continued strength, with expectations of significant growth in AI semiconductor revenue and stable performance in other areas. Despite some sequential margin pressures due to increased R&D investments, the company’s overall financial health remains strong, supported by a favorable capital return profile. These factors collectively underpin Naji’s positive outlook on Broadcom, justifying the Buy rating.

In another report released today, Oppenheimer also reiterated a Buy rating on the stock with a $265.00 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.