Yahoo Finance AI winner Broadcom stock gets a new Street high price target ahead of stock split
Rosenblatt has raised its price target on Broadcom (NASDAQ:AVGO) to $2,400 from $1,650, setting a new Street target high for the stock. The bullish upgrade comes ahead of Broadcom's 10-for-1 stock split next week.
"We are rolling out FY26 estimates that support high-teens sales growth and $75 Non-GAAP EPS, driven by continued AI infrastructure networking/ASIC momentum and improved synergies in enterprise software," said Rosenblatt.
"For FY24, we continue to expect an upside to the recently raised sales target of $51B, driven by AI semi-sales (40%+ of mix) and better VMware (NYSE:VMW) integration, explains the firm.
The firm also commended Broadcom's execution, citing its "remarkable 2x growth in switching (Tomahawk 5 and Jericho 3) and similar growth in PCIe switches and NICs."
The firm expects Broadcom to continue benefiting from strong demand for its AI-focused semiconductors, particularly in the networking and ASIC segments. The integration of VMware is also anticipated to contribute positively to the company's performance.
Rosenblatt highlights Broadcom's competitive advantage in the AI landscape, emphasizing its "open" standards approach compared to Nvidia (NASDAQ:NVDA)'s mixed model. The firm believes both companies will thrive in the AI market, but Broadcom's strategy has garnered support from key industry players.
Related Articles
AI winner Broadcom stock gets a new Street high price target ahead of stock split
JPMorgan aims to amass 15% of US consumer deposits, boost credit card share
Tech sector ranks worst on BofA's small-cap tactical sector rankings list
