Benchmark Co. analyst Cody Acree has reiterated their bullish stance on AVGO stock, giving a Buy rating today.
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Cody Acree has given his Buy rating due to a combination of factors related to Broadcom’s strategic partnership with OpenAI. The collaboration involves the deployment of 10 gigawatts of AI accelerators, servers, and networking equipment, which is expected to generate significant revenue for Broadcom. This partnership aligns with Broadcom’s recent announcement of $10 billion in new AI orders, indicating strong demand and future growth potential.
Moreover, the co-development of custom AI silicon solutions and rack-scale systems demonstrates Broadcom’s commitment to innovation and efficiency. Unlike previous agreements with Nvidia and AMD, Broadcom’s partnership with OpenAI does not require a direct cash investment or equity stake, positioning it favorably. Despite concerns about the ambitious expansion plans of OpenAI, the long-term commitment and potential for substantial revenue growth reinforce the Buy rating, supported by a price target of $385, reflecting a conservative estimate of future earnings.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $460.00 price target.