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Investment Banks Raise Broadcom Price Targets Following Strong Results

Broadcom (NASDAQ:AVGO) recently unveiled robust quarterly results, prompting several investment banks to revise their price targets upwards.

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The chipmaker upgraded its annual revenue forecast for AI-linked chips to $11 billion from $10 billion, along with increasing its core profit projections and announcing a 10-for-1 stock split.

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The growing adoption of generative AI is fueling demand for companies like Broadcom, which supply chips and networking tools essential for supporting these resource-intensive applications.

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On Thursday, its stock closed at $1,678.52, marking a more than 12% increase for the day and over 50% year-to-date.

Deutsche Bank raised its 12-month price target to $1,900 from $1,400, along with EPS estimates, while maintaining a ‘buy’ rating.

In a note dated June 13, analysts at the German bank stated, “Overall, we believe AVGO [Broadcom] remains one of the most attractive options within the semiconductor industry, having a strong exposure to the AI megatrend, a core business primed for a cyclical rebound, and growth/synergy potential within the recently acquired VMware (NYSE:VMW).”

JPMorgan also revised its year-end price target to $2,000 from $1,700, elevating its forward estimates while maintaining an ‘overweight’ rating.

In another note dated June 13, JPMorgan commented, “Overall, the team continues to drive a stable revenue growth profile even in a period of macro volatility given its portfolio breadth/diversification/product cycles.”

Goldman Sachs increased its 12-month price target to $1,850 from $1,550, and also raised its FY2024-26 revenue and non-GAAP EPS estimates by 7% and 6%, respectively. The bank retained its ‘buy’ rating.

In a note dated June 13, analysts at Goldman emphasized, “Alongside Nvidia (NASDAQ:NVDA), we view Broadcom as a critical piece to the ongoing AI infrastructure build-out.”

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