Broadcom price target raised to $385 from $315 at Benchmark

Benchmark raised the firm’s price target on Broadcom (AVGO) to $385 from $315 and keeps a Buy rating on the shares, calling the company’s report and outlook “more reminiscent of Nvidia’s (NVDA) strong quarter than Marvell’s (MRVL) recent more lackluster performance.” With XPU’s now making up about 65% of total AI chip revenue, growth looks to be driven by Broadcom’s share gains at its first three existing XPU customers – Google (GOOGL), Meta (META) and ByteDance – while Broadcom announced that a fourth custom ASIC partner has recently risen to become a qualified customer, with firm AI rack orders now exceeding $10B that are expected to be deliverable by Q3 next year, the analyst added.