According to Bank of America, Broadcom remains a “best-in-class” buying opportunity as artificial intelligence boosts profitability. Analyst Vivek Ariya reiterated his buy rating for Broadcom following CEO Hock Tan’s keynote address at Bank of America’s Global Technology Conference. “Management focuses on premium computing/networking products, focuses on operational efficiency, and convinces with GM’s consistent expansion, best-in-class FCF generation/profit (semiconductor industry’s best FCF margin of 50% or more) It presented a unique vision of what it means to be,” Aria wrote in a note Wednesday. AVGO 1D Mountain Broadcom Shares Day Broadcom shares surged 41% this year. But analysts’ price target of $950 means the stock is up another 20% from Tuesday’s closing price of $790. This growth will be further fueled by the rapidly expanding AI market, which is still in its early stages. Arya highlighted not only Broadcom’s semiconductor business, but also the potential of his platform for AI Ethernet networking. “Although much attention has been focused on the proliferation of AI server accelerators, an under-appreciated opportunity is networking assets that need to support the higher bandwidth requirements generated by AI workloads, which It could have a greater impact on the long-term growth of AVGO’s AI,” the note said. “Overall, the use of AI is expected to enable AVGO to achieve EPS of approximately $47 to over $50 by FY24/25E, meeting the long-term AI revenue target figures (latest June See the earnings notes on the 1st) ),” said an analyst. — CNBC’s Michael Bloom contributed to this report.
