Investing.com – Broadcom (NASDAQ:) posted impressive quarterly results earlier this week, and a number of investment banks have responded positively, raising their price targets as a result.
The chipmaker raised its annual revenue forecast from AI-linked chips from $10 billion to $11 billion, raised its annual underlying revenue and profit forecasts and announced a 10-1 stock split.
The growing adoption of generative AI has been driving demand for companies like Broadcom, which provide chips and networking tools to support these intensive applications.
Its shares closed on Thursday at $1,678.52, with a revaluation of more than 12% throughout the day and more than 50% so far this year.
Deutsche Bank (ETR:) has raised its 12-month price target to $1,900 from $1,400, as well as EPS estimates, while leaving the “buy” rating unchanged.
“Overall, we believe that AVGO [Broadcom] “remains one of the most attractive options within the semiconductor industry as it has strong exposure to the AI megatrend, a core business on track for a cyclical rebound, and growth/synergy potential within the recently acquired VMware.” , said the German bank’s analysts in a note dated June 13.
JPMorgan (NYSE:) also raised its year-end price target from $1,700 to $2,000, raising its forward estimates while maintaining an “overweight” rating.
“Overall, the team continues to drive a stable revenue growth profile, even in a period of macroeconomic volatility, given the breadth, diversification and product cycles of its portfolio,” JPMorgan said in a note dated June 13. .
Goldman Sachs (NYSE:) has also raised its 12-month price target from $1,550 to $1,850, while increasing its FY2020-26 non-GAAP revenue and EPS estimates by 7% and 6%, respectively.
The bank maintained its “buy” rating.
“Along with Nvidia (NASDAQ:), we view Broadcom as a critical piece to building today’s AI infrastructure,” Goldman analysts say in a note dated June 13.
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