On September 9, we highlighted opportunity in Broadcom (SYM: AVGO).
At the time, the company just posted strong earnings, but dropped $13 a share on guidance to $139 a share. Oversold, we mentioned it as an opportunity and just watched it run back to $178.09 a share.
Helping, analysts at William Blair are bullish on the stock, noting:
“Broadcom is targeting $12 billion in AI revenue in fiscal 2024,” as noted by the firm, “with roughly two-thirds coming from its custom chip business and one-third related to its Ethernet networking solutions. We see room for continued steady growth going into fiscal 2025 and 2026 driven by increasing custom chip demand, improved software monetization, recovery in non-AI semis, and accelerating growth of Ethernet AI network fabrics built on top of Broadcom’s networking solutions—Ethernet is just starting to displace InfiniBand as the solution of choice for AI networks.”
“And with its largest acquisition to date of VMware, completed in November 2023, Broadcom has added a massive, sticky, recurring revenue base—software now accounts for nearly 40% of total Broadcom revenue,” they added.
