Benchmark Co. analyst Cody Acree reiterated a Buy rating on Broadcom (AVGO – Research Report) today and set a price target of $255.00.
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Cody Acree’s rating is based on Broadcom’s impressive performance in the AI sector, which has significantly exceeded market expectations. The company’s AI revenue grew by 77% annually, reaching $4.1 billion in the first quarter of 2025, surpassing its initial target. This growth is largely attributed to its networking business and the contribution from XPU revenue, positioning Broadcom well to benefit from the industry’s increasing adoption of AI.
Furthermore, Broadcom’s strategic engagements with major hyperscale customers like Google, Meta, and ByteDance, along with potential new partnerships with OpenAI and Apple, provide a strong foundation for future growth. The company’s robust financial performance, including revenue and earnings that outperformed market consensus, along with its promising long-term revenue potential, supports the Buy rating and a price target of $255.
In another report released today, DBS also maintained a Buy rating on the stock with a $250.00 price target.