Morgan Stanley analyst Joseph Moore has reiterated their bullish stance on AVGO stock, giving a Buy rating today.
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Joseph Moore has given his Buy rating due to a combination of factors including Broadcom’s strategic partnership with OpenAI, which is set to significantly enhance their AI capabilities. This multi-year collaboration involves the development of custom AI accelerators and network systems, highlighting Broadcom’s pivotal role in the rapidly growing AI sector. The partnership is expected to boost Broadcom’s customer base, adding OpenAI to a list that already includes major players like Google, Meta, and ByteDance.
Furthermore, Moore anticipates substantial revenue growth for Broadcom, projecting an increase in AI data center revenue by approximately $8 billion by 2027. Although there may be lower margins from rack sales, the overall financial impact is expected to be positive in dollar terms. This optimistic outlook, coupled with the potential for significant upside, has led Moore to raise the price target for Broadcom’s stock and maintain a positive long-term view on its ASIC and AI initiatives.
In another report released today, Deutsche Bank also maintained a Buy rating on the stock with a $400.00 price target.
Based on the recent corporate insider activity of 65 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.