Broadcom (NASDAQ:AVGO) stock jumped Thursday following its AI Infrastructure Day event the previous day, with analysts at Goldman Sachs and Bernstein releasing bullish notes on the stock.
Analysts at Goldman Sachs reiterated their Buy rating and $1,550 12-month price target on the stock, saying they came away from the meeting with a better appreciation of Broadcom's strategy, competitive moat, and growth opportunity across Networking and Compute Acceleration within the context of AI.
Broadcom's strategy is to identify and participate in markets that are durable and those in which the company either has or can construct a sustainable leadership position. "Importantly, we believe the AI infrastructure market meets these conditions and is the reason why Broadcom has been investing and leading in the areas of networking and custom compute to date," said analysts at Goldman Sachs.
Meanwhile, Bernstein maintained an Outperform rating and a $1,600 price target on the stock.
The firm's analysts said the messaging from Broadcom was competent and powerful and exceeded expectations, with ethernet seen as the way to go as AI clusters scale into the 1 million or more range.
"Broadcom is the only company aside from NVIDIA that is really seeing material AI upside at this point, and yesterday's event showed us why," declared analysts at Bernstein. "We like the story with a robust AI narrative, a reset core, and VMW accretion."