Cantor Fitzgerald maintains Broadcom stock at $300 target

On Monday, Cantor Fitzgerald confirmed its Overweight rating on Broadcom Limited (NASDAQ:AVGO), a semiconductor giant with a market capitalization of $934.8 billion, maintaining a steady price target of $300.00. According to InvestingPro data, the company has demonstrated remarkable growth with a 44% year-over-year revenue increase. The firm anticipates Broadcom to slightly surpass expectations for the January quarter and to provide guidance for the April quarter that aligns with current projections, with the next earnings report due on March 6. Analysts at Cantor Fitzgerald predict that the usual fluctuations in wireless sales, combined with stable trends in Custom Silicon, specifically Tensor Processing Units (TPUs), will be balanced by stronger performance in AI and non-AI networking. This balance is expected to result in a guidance that meets top-line estimates.

Broadcom’s management is anticipated to continue expressing a strong outlook for AI revenue, potentially supporting higher consensus figures for the entire calendar year of 2025. With an impressive gross profit margin of 75.2% and strong financial health metrics according to InvestingPro analysis, the company appears well-positioned to capitalize on AI opportunities. The analysts highlighted that an increase in TPU average selling prices might be an underappreciated factor driving revenue growth in the second half of the year. With Broadcom now reporting revenues exclusively in AI and non-AI Semiconductor segments, attention is turning towards the company’s forecasts for FY25, although detailed commentary is expected to be limited. Cantor Fitzgerald’s models project AI revenues of $17.8 billion for FY25 and $24.8 billion for FY26, driven largely by significant advancements in Custom Silicon and ongoing growth in AI Networking and Storage.

The report also addresses the potential loss of a Wi-Fi/Bluetooth combo chip socket at Apple (NASDAQ:AAPL), suggesting that Broadcom has secured other RF sockets that could offset most of the impact. The analysis concludes with a positive outlook on Broadcom’s position in the AI market, as the company is on track to capture a significant market share within its $60-90 billion AI Serviceable Addressable Market (SAM) by FY27, across both Compute and Networking sectors. With analysts maintaining a strong consensus recommendation of 1.41 (where 1 is Strong Buy), the reiteration of the Overweight rating and $300 price target by Cantor Fitzgerald aligns with broader market sentiment. For deeper insights into Broadcom’s valuation and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks with detailed analysis and actionable intelligence.

In other recent news, Intel Corporation (NASDAQ:INTC) has been at the center of significant discussions regarding potential acquisitions and business restructuring. Reports have surfaced about Broadcom Inc. considering a bid for Intel’s chip design and marketing business, which includes divisions like the Client Computing Group and Data Center and AI. These segments generated approximately $49 billion in sales in 2024, contributing to Intel’s earnings despite challenges in its manufacturing arm. Analysts at Bernstein have expressed interest in the potential deal, recommending holding Broadcom shares and rating the company as ’Outperform.’

Meanwhile, BofA Securities has maintained an ’Underperform’ rating on Intel, citing skepticism about the benefits of splitting its business amid acquisition rumors involving Broadcom and Taiwan Semiconductor Manufacturing Co. Analyst Vivek Arya highlighted challenges such as regulatory approvals and Intel’s manufacturing constraints. Mizuho (NYSE:MFG) analyst Jordan Klein also weighed in on the speculation about TSM potentially acquiring Intel’s U.S. factories, noting a lack of institutional support for the deal.

In other developments, the European Commission announced a €200 billion investment initiative called InvestAI, aiming to establish Europe as a leading hub for artificial intelligence. This initiative includes plans for AI gigafactories and aims to foster collaborative development in AI. Additionally, Meta Platforms Inc (NASDAQ:META).’s CEO Mark Zuckerberg discussed the company’s strategic focus on inference computing and its potential impact on infrastructure investment, indicating a shift in computational resources toward AI systems that interpret and apply knowledge.

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