In a report released yesterday, Vivek Arya from Bank of America Securities reiterated a Buy rating on Broadcom (AVGO – Research Report), with a price target of $260.00.
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Vivek Arya has given his Buy rating due to a combination of factors that highlight Broadcom’s strong position in the AI market. The company has exceeded expectations for the fourth quarter and first quarter, surpassing consensus AI forecasts by approximately 10%. Additionally, Broadcom has reaffirmed its significant addressable market opportunity, projected to be between $60 billion and $90 billion by 2027, across its existing AI customer base. The company is also expanding its customer engagements, increasing from two to four additional customers, which brings the total to seven, indicating a growing demand for its AI solutions.
Another reason for the Buy rating is Broadcom’s leadership in next-generation accelerator development, including the industry’s first 2nm AI XPU and advanced Ethernet switch technology. Despite potential risks such as tariff concerns and changes in AI investment sentiment, Broadcom’s differentiated product pipeline and expanding customer list position it well for future growth. The analyst has also raised the price objective to $260, reflecting confidence in Broadcom’s ability to capture a significant share of the long-term addressable market in AI, despite potential competitive pressures.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $275.00 price target.
Based on the recent corporate insider activity of 62 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.