Wang & Lee Group board approves 250-to-1 reverse share split
On Friday, Mizuho (NYSE:MFG) analysts increased their price target for Broadcom Limited (NASDAQ: NASDAQ:AVGO) stock to $310 from $300, while maintaining an Outperform rating. With a market capitalization of $1.22 trillion and trading near its 52-week high, InvestingPro data suggests the stock is currently overvalued. The adjustment follows Broadcom’s report of results for the April quarter that met expectations and guidance for the July quarter of approximately $15.8 billion, slightly above the consensus of $15.7 billion.
Broadcom anticipates accelerating demand for AI inference in the second half of fiscal year 2026, which is expected to drive AI semiconductor revenue up by more than 60% year-over-year. The company’s impressive 40.3% revenue growth over the last twelve months and industry-leading gross profit margin of 76.26% demonstrate its strong market position. In the April quarter, AI revenue was approximately $4.4 billion, with CustomXPU contributing around $2.6 billion and AI Networking at $1.8 billion. The company has guided AI revenue to increase to $5.1 billion in the July quarter, representing a 16% quarter-over-quarter growth.
The launch of Tomahawk 6 is also noteworthy, enabling over 100,000 XPU two-tier AI clusters at 200G per lane. Additionally, Broadcom expects a sequential increase in broadband and networking revenues, while storage, wireless, and industrial segments are projected to remain flat. Infrastructure software revenue is guided to rise by approximately 1.6% quarter-over-quarter, with VMware having more than 87% of its largest 10,000 customers on subscription or VCF solutions.
Broadcom’s financial outlook remains strong, with industry-leading gross and operating margins forecasted at around 79% and 65%, respectively, for fiscal year 2025, and free cash flow potentially growing to approximately $31 billion annually. InvestingPro analysis reveals an overall financial health score of "GREAT," with 20+ additional exclusive insights available to subscribers. Access the comprehensive Pro Research Report for deep-dive analysis of Broadcom’s market position and growth potential.
In other recent news, Broadcom Limited has seen a series of analyst upgrades following its strong performance and promising outlook in the AI sector. Piper Sandler raised its price target for Broadcom to $300, noting the company’s solid quarterly results and a projected 60% year-over-year growth in its AI semiconductor segment for the third fiscal quarter. Morgan Stanley (NYSE:MS) also increased its price target to $270, citing Broadcom’s strong position in the AI market and the potential addition of new customers. Evercore ISI adjusted its target to $304, highlighting Broadcom’s robust AI revenue momentum and a projected 58% growth in AI for fiscal year 2025.
KeyBanc raised its price target to $315, supported by Broadcom’s second-quarter results and significant growth in AI Networking revenue. Deutsche Bank (ETR:DBKGn) increased its price target to $270, emphasizing Broadcom’s AI segment growth prospects and its alignment with expectations. Across these analyses, Broadcom’s AI business is a focal point, with expectations of continued growth driven by demand from major clients like Google (NASDAQ:GOOGL), META (NASDAQ:META), and ByteDance. The company’s strategic positioning in AI and its ability to maintain a premium price-to-earnings ratio are also noted. Despite some concerns about competition in the connectivity business, Broadcom’s management remains confident in its market dominance and growth trajectory.
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