Mizuho maintains Broadcom stock Outperform with $250 target

Published 16/05/2025, 22:00
Mizuho maintains Broadcom stock Outperform with $250 target

On Friday, Mizuho (NYSE:MFG) Securities reiterated its positive stance on Broadcom Limited (NASDAQ:AVGO), maintaining an Outperform rating and a $250.00 price target. The semiconductor giant, now valued at over $1 trillion, has demonstrated impressive financial performance with a 40.3% revenue growth over the last twelve months. According to InvestingPro analysis, while the company shows strong fundamentals, it appears to be trading above its Fair Value, with multiple valuation metrics in elevated territory. Broadcom is anticipated to benefit from the introduction of products such as TPUv7p/MTIA2 and collaborations with OpenAI on Strawberry and Apple (NASDAQ:AAPL)’s Baltra project.

The forecast also suggests potential for additional Custom ASIC engagements stretching into the first half of 2027. However, the report indicates that Marvell (NASDAQ:MRVL) Technology might face challenges due to a potential softening in CoWoS (Chip-on-Wafer-on-Substrate) capacity in 2026, which could favor AlChip in terms of Trn3 technology gains.

The Mizuho analyst’s call also touched on near-term industry dynamics, noting that MediaTek, covered by Kevin Wang with a Buy rating and a TWD1,750 price target, could experience difficulties. These issues stem from yield problems with the v7e ramp, which may dampen MediaTek’s CoWoS outlook for 2026.

Broadcom, a key player in the semiconductor industry, seems poised to capitalize on the growing demand for custom ASIC solutions. The company’s collaboration with tech giants like OpenAI and Apple underscores its strategic positioning in the market. InvestingPro data reveals an impressive overall Financial Health Score of "GREAT," supporting Mizuho Securities’ confidence in Broadcom’s ability to navigate the evolving semiconductor landscape. For deeper insights into Broadcom’s valuation metrics and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, Broadcom Incorporated has announced a partnership with Corning Incorporated (NYSE:GLW) to supply optical components for its Bailly co-packaged optics technology, aiming to enhance data center performance amid growing AI demands. This collaboration is expected to improve optical interconnection density and power efficiency for large-scale AI clusters. Additionally, Seaport Global Securities has initiated coverage of Broadcom with a Buy rating, highlighting the company’s strong position in AI spending and setting a price target of $230. Broadcom’s recent launch of the AI-driven Incident Prediction tool for its Symantec (NASDAQ:GEN) Endpoint Security Complete product marks a significant step in enhancing cybersecurity by predicting and disrupting cyberattacks. This tool is designed to alleviate the workload for Security Operations Center analysts by automating mitigation processes. Meanwhile, the semiconductor sector, including Broadcom, experienced a boost following a 90-day tariff pause announced by President Trump, though analysts warn of continued volatility due to trade tensions. Cantor Fitzgerald analysts emphasize the importance of semiconductor stocks, noting the varying degrees of economic sensitivity within the sector. Broadcom continues to expand its influence in the tech sector, leveraging its expertise in AI and cybersecurity.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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