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Investing.com - JPMorgan raised its price target on Broadcom Limited (NASDAQ:AVGO) to $400.00 from $325.00 on Friday, while maintaining an Overweight rating on the stock. The company, which boasts impressive gross profit margins of 77.19% and has generated over $22.7 billion in free cash flow over the last twelve months, continues to demonstrate strong financial performance.
The firm identified Broadcom as a leader in multiple technology segments including wireless, data center networking, AI/deep learning ASICs, storage, and infrastructure silicon, hardware, and software.
JPMorgan noted that the company has "broad-based exposure to positive trends" across these various end markets, positioning it to benefit from growth in these sectors.
The research firm described Broadcom as a "technology infrastructure powerhouse" with unmatched scale and technology capabilities in the industry.
These strengths have secured Broadcom’s leadership positions across diverse end markets, according to JPMorgan’s analysis of the semiconductor and infrastructure software company.
In other recent news, Broadcom Limited has reported fiscal third-quarter results that exceeded analyst expectations, which has positively impacted European semiconductor stocks. The company’s guidance for the October quarter is approximately $17.4 billion, surpassing consensus estimates of $17.0 billion. This strong performance has led several investment banks to adjust their outlooks on Broadcom. Deutsche Bank raised its price target to $350, citing stronger-than-expected growth prospects in artificial intelligence, while Mizuho increased its target to $355, maintaining an Outperform rating. Goldman Sachs reiterated its Buy rating with a $360 price target, emphasizing Broadcom’s momentum in AI and the conversion of a new custom silicon customer. HSBC also maintained a Buy rating, setting a $400 price target, following the announcement of a new ASIC customer expected to contribute significantly to future revenue. These developments highlight Broadcom’s robust position in the semiconductor industry and its strategic advancements in AI and ASIC markets.
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