Oppenheimer raised the firm’s price target on Broadcom (AVGO) to $265 from $225 and keeps an Outperform rating on the shares ahead of quarterly results. The firm sees upside Q2 results and Q3 outlook, with growth anchored by AI compute/networking franchises. Oppenheimer says AI ASIC/networking was split 60/40 in Q1, and is expected closer to 70/30 in Q2. Broadcom is the undisputed custom ASIC leader with seven announced projects. AI ASIC projects led by Google (GOOG), Meta (META), and ByteDance lead near term, the firm adds. Microsoft (MSFT)-backed OpenAI and Apple (AAPL) project ramp next year, followed by two new projects announced March 6. In the firm’s view, Fujitsu potentially one of the new customers given its collaboration using Broadcom’s latest 3.5D XDSiP for Monaka server CPU.
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