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On Monday, Citi analysts raised the price target for Broadcom Limited (NASDAQ: NASDAQ:AVGO) stock to $276 from $210, while maintaining a Buy rating. The adjustment comes ahead of Broadcom’s fiscal second-quarter 2025 results, set to be released on Thursday after the market closes. According to InvestingPro data, the stock is trading near its 52-week high of $251.88, with analyst targets ranging from $200 to $301.50.
The analysts anticipate that Broadcom will report results that exceed consensus expectations, attributing this optimism to strong performance in the company’s AI segment, which is projected to account for 30% of fiscal 2025 sales. The company’s impressive 76.26% gross profit margins and 40.3% revenue growth support this optimistic outlook.
Broadcom’s non-AI semiconductor business, which represents 27% of fiscal 2025 sales, has experienced a downturn, with sales down approximately 40% from their peak. Despite this, Citi analysts believe the business will recover from current levels and help counteract the impact of gross margin dilution from its AI operations.
The increased price target and maintained Buy rating reflect confidence in Broadcom’s ability to leverage its AI business to enhance overall financial performance. The forthcoming earnings report will provide further insights into the company’s progress and future outlook.
In other recent news, Broadcom Limited has been the focus of several analyst evaluations and strategic developments. Mizuho Securities increased its price target for Broadcom from $250 to $300, maintaining an Outperform rating, citing the company’s strong position in AI Custom Silicon and expected growth in its market share by fiscal year 2027. Redburn-Atlantic also initiated coverage on Broadcom with a Buy rating and set a price target of $301, highlighting the company’s robust customer pipeline and strategic acquisition of VMware to enhance its position in the private cloud market. Melius reiterated a Buy rating for Broadcom, with a price target of $283, emphasizing the company’s strength in networking and AI accelerators.
Additionally, Broadcom has partnered with Corning Incorporated (NYSE:GLW) to enhance its Bailly co-packaged optics technology, which aims to improve data center processing capacity for AI workloads. This collaboration will integrate Corning’s advanced optical components to increase optical interconnection density and power efficiency. These developments underscore Broadcom’s strategic positioning in the semiconductor industry, with ongoing partnerships and acquisitions aimed at expanding its reach in AI and cloud technologies. Analysts from firms like Mizuho and Redburn-Atlantic express confidence in Broadcom’s future performance, projecting revenue growth and market expansion in the coming years.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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