On January 15, Citi maintained a Buy rating on Broadcom Inc. (NASDAQ:AVGO) with a price target of $480. The firm established this target after a transfer of coverage, driven by the company's accelerating AI sales. This shift reflects increased confidence in Broadcom's ability to capitalize on AI demand.
Also on January 15, Wells Fargo upgraded Broadcom to Overweight from Equal Weight, raising its price target to $430 from $410. The firm stated that concerns regarding gross margins are overdone. Wells Fargo anticipates Google TPU upside, significant ramps for additional custom XPUs, and continued momentum in scale-out and scale-up networking.
On January 14, RBC Capital analyst Srini Pajjuri initiated coverage of Broadcom with a Sector Perform rating and a price target of $370. Pajjuri noted that while Google's TPUs show significant near-term momentum, there are concerns regarding the long-term sustainability of the Anthropic ramp-up. The potential timing and scale of opportunities with OpenAI remain uncertain.
Broadcom Inc. designs, develops, and supplies various semiconductor devices and infrastructure software solutions internationally. The company operates in two segments: Semiconductor Solutions and Infrastructure Software.