NVIDIA launches Jetson Thor robotics computers for physical AI systems
Investing.com - Mizuho (NYSE:MFG) has raised its price target on Broadcom Limited (NASDAQ:AVGO) to $329.00 from $315.00 while maintaining an Outperform rating on the stock. The semiconductor giant, with trailing twelve-month revenue of $57.05 billion and impressive gross margins of 77%, is currently trading above InvestingPro’s Fair Value estimate.
The adjustment follows the Trump administration’s announcement that NVIDIA (NASDAQ:NVDA) and other AI accelerator providers would be allowed to resume AI GPU shipments to China as part of ongoing trade negotiations.
Mizuho noted that this development could put Broadcom’s ASIC for ByteDance "back on the table," potentially driving upside from current estimates as U.S. companies re-enter what the firm estimates is a $50 billion market.
The firm highlighted this as a positive development for several semiconductor companies, with NVIDIA previously expecting an $8 billion revenue impact in the July quarter from the prior shipment restrictions.
Mizuho also raised price targets for NVIDIA and AMD (NASDAQ:AMD) alongside Broadcom, noting that key customers like ByteDance and Tencent (HK:0700) are already applying for licenses to receive shipments.
In other recent news, Broadcom Inc. has begun shipping its Tomahawk Ultra Ethernet switch, designed for high-performance computing and artificial intelligence applications. The switch boasts a latency of 250 nanoseconds and can process up to 77 billion packets per second, supporting line-rate switching performance at minimum packet sizes. In addition, Broadcom has introduced SUE-Lite, an optimized version of its Scale-Up Ethernet specification aimed at reducing power consumption and silicon footprint requirements. Meanwhile, Oppenheimer has raised its price target for Broadcom to $305, citing expanding earnings power and stable industrial and infrastructure exposure. Goldman Sachs has initiated coverage on Broadcom with a Buy rating and a $315 price target, highlighting the company’s dominant position in infrastructure software. JPMorgan has reiterated its Overweight rating with a $325 price target, noting strong AI demand trends driving growth in Broadcom’s custom AI XPU business. However, Broadcom has reportedly abandoned plans for a chip plant in Spain after negotiations with the Spanish government collapsed. The company did not provide details on why the discussions failed.
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