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Broadcom Continues Upside To AI: 'Uniquely Positioned' To Grow, Says Analyst After Q2 Results

Published 13/06/2024, 18:22
© Reuters. Broadcom Continues Upside To AI: \'Uniquely Positioned\' To Grow, Says Analyst After Q2 Results
AVGO
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Benzinga - by Priya Nigam, Benzinga Staff Writer.

Broadcom Inc (NASDAQ:AVGO) shares were climbing on Thursday, after the company reported upbeat results for its fiscal second quarter.

The company reported its quarterly results amid an exciting earnings season. Here are some key analyst takeaways.

BofA Securities On Broadcom Analyst Vivek Arya maintained a Buy rating while raising the price target from $1,680 to $2,000.

Broadcom reported a 4% beat on its quarterly sales and raised its full-year sales outlook by $1 billion to $51 billion, Arya said in a note. The company also announced a 10:1 stock split, he added.

The analyst named Broadcom as "a top AI pick," saying that the company appears "uniquely positioned" to grow in custom AI chips, Ethernet networking, and VMware upsell. He added that the company could outperform its full-year guidance "on continued upside to AI."

Check out other analyst stock ratings.

Goldman Sachs On Broadcom Analyst Toshiya Hari reiterated a Buy rating while lifting the price target from $1,550 to $1,850.

Broadcom reported revenues of $12.5 billion, representing 4% sequential and 43% year-on-year growth, Hari said. Stronger-than-feared revenues at VMware and robust AI semiconductor revenue "combined for credible upside" in the fiscal second quarter, he added.

"We envision secular growth in the AI semiconductor business (i.e. custom accelerators and high-speed networking chips) coupled with revenue and cost synergies associated with the VMware acquisition driving positive revisions to consensus EPS and FCF and, ultimately, stock price outperformance," the analyst further wrote.

AVGO Price Action: Shares of Broadcom had risen by 12.16% to $1,677.39 at the time of publication on Thursday.

Photo: Shutterstock

Latest Ratings for AVGO

DateFirmActionFromTo
Mar 2022Truist SecuritiesMaintainsBuy
Mar 2022JP MorganMaintainsOverweight
Mar 2022Morgan StanleyMaintainsOverweight
View More Analyst Ratings for AVGO

View the Latest Analyst Ratings

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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