William Blair analyst Sebastien Naji has reiterated their bullish stance on AVGO stock, giving a Buy rating today.
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Sebastien Naji has given his Buy rating due to a combination of factors that highlight Broadcom’s strong performance and future potential. The company reported a significant year-over-year revenue increase of 22%, driven by robust demand in AI ASICs and Ethernet networking, alongside solid software sales. This performance aligns with the anticipated growth trajectory, particularly in AI ASICs, which is expected to accelerate revenue growth significantly by fiscal 2026.
Moreover, Broadcom’s strategic expansion in AI ASICs is underscored by the addition of a fourth major customer, which has already placed a substantial order. This development, along with a record backlog of $110 billion, primarily in semiconductors, reinforces the company’s growth prospects. The management’s confidence in achieving accelerated growth in AI semiconductor sales, modeled at 69% for fiscal 2026, further supports the Buy rating, indicating a positive outlook for Broadcom’s stock.
In another report released today, Bernstein 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.