Citi analyst Christopher Danely has reiterated their bullish stance on AVGO stock, giving a Buy rating today.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Christopher Danely has given his Buy rating due to a combination of factors related to Broadcom’s recent strategic developments. A significant driver for this positive outlook is the newly announced deal between Broadcom and OpenAI, where OpenAI will utilize ten gigawatts of Broadcom’s AI chips. This partnership is projected to generate an additional $100 billion in revenue and approximately $8.00 in earnings per share (EPS) for Broadcom over the coming years.
Furthermore, Danely has raised his estimates and price target for Broadcom, increasing the target from $350 to $415. This adjustment reflects the anticipated growth in Broadcom’s AI business, which is expected to more than quadruple from $22 billion in 2025 to $85 billion in 2027. The accelerating sales in AI technology and the substantial capital expenditure by OpenAI contribute to the robust financial outlook, reinforcing the Buy rating for Broadcom’s stock.
In another report released today, Deutsche Bank also maintained a Buy rating on the stock with a $400.00 price target.