TD upgrades Broadcom on ‘sustainability and diversity’ of growth

TD Cowen upgraded Broadcom to Outperform from Market Perform with a price target of $1,500, up from $1,400, following the company’s artificial intelligence infrastructure event. The firm sees potential upside from both Broadcom’s custom silicon and back-end AI networking, as well as from synergies as VMWare is integrated. Consensus estimates already acknowledge cyclicality in Broadcom’s non-AI semis verticals, the analyst tells investors in a research note. Despite the recent run in shares, TD is confident in the company’s “sustainability and diversity” of growth and potential upside to consensus estimates, driven by AI compute/networking and software growth.