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Broadcom: Mizuho, Rosenblatt hike price targets on positive AI outlook

Investing.com– Mizuho (NYSE:MFG) and Rosenblatt hiked their price targets on Broadcom Inc (NASDAQ:AVGO) after the network chips maker forecast stronger-than-expected earnings for the current quarter on robust artificial intelligence-fueled demand.

Mizuho hiked its PT to $245 from $220 and reiterated its Outperform rating, while Rosenblatt raised its PT to $250 from $240 and maintained its Buy rating.

The firm clocked stronger-than-expected earnings for the November quarter, and also forecast stronger-than-expected revenue growth for the current quarter.

Broadcom CEO Hock Tan said during the company’s earnings call that the firm is expected to continue seeing strong AI-fueled demand. He forecast AI revenues of more than $50 billion by 2027- a significant jump from current levels.

Broadcom’s stock hit a record high of over $207 in aftermarket trade.

Mizuho said it saw a good roadmap for Broadcom, and that it was likely to outpace its peers in rolling out advanced AI network chips.

Rosenblatt analysts said Broadcom’s custom Application-specific integrated circuit 3 nanometer chips are expected to ship in spring 2025, well ahead of any competitors.

The chipmaker has benefited greatly from increased AI-fueled demand over the past year, given that the industry requires advanced network and data centre infrastructure.

Broadcom shares are trading up more than 60% so far in 2024.

This post appeared first on investing.com

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