Analyst James Schneider of Goldman Sachs reiterated a Buy rating on Broadcom, boosting the price target to $380.00.
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James Schneider has given his Buy rating due to a combination of factors, primarily centered around Broadcom’s strategic partnership with OpenAI. This collaboration is set to deploy 10GW of custom-designed AI accelerators and networking products, which underscores Broadcom’s leadership in custom silicon technology. The partnership, which includes co-development of systems with Broadcom’s accelerators and Ethernet solutions, is expected to start deployments in the second half of 2026 and complete by the end of 2029.
Schneider believes this partnership not only reaffirms Broadcom’s strong technology position relative to competitors but also presents a significant revenue opportunity. The estimated revenue and EPS contribution per gigawatt of AI Datacenter deployment could translate to approximately $10-$15 billion in incremental revenue and $1.00-$1.50 in EPS for Broadcom. This potential for substantial financial returns, coupled with industry-leading margins, is expected to drive stock price outperformance and provide strong visibility into fiscal years 2026 and 2027.
In another report released on October 14, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $408.00 price target.
Based on the recent corporate insider activity of 63 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.