Mizuho Securities analyst Vijay Rakesh has reiterated their bullish stance on AVGO stock, giving a Buy rating today.
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Vijay Rakesh has given his Buy rating due to a combination of factors, primarily driven by Broadcom’s recent partnership with OpenAI. This deal involves the deployment of 10 gigawatts of custom silicon, which is expected to generate significant revenue for Broadcom over several years, potentially amounting to $150-200 billion. The partnership has led to an increase in Broadcom’s AI revenue estimates, with projections for fiscal years 2026, 2027, and 2028 being raised significantly.
Additionally, the collaboration with OpenAI is expected to provide Broadcom with substantial tailwinds in networking, further enhancing its revenue potential. The involvement of former Google TPU engineers in the project is anticipated to mitigate execution risks and accelerate the deployment of Broadcom’s Titan ASICs. With these factors in mind, Rakesh has raised the price target for Broadcom to $430, reflecting confidence in the company’s growth prospects and its position as a leader in the semiconductor industry.
In another report released today, Benchmark Co. also reiterated a Buy rating on the stock with a $385.00 price target.