Nucor earnings beat by $0.08, revenue fell short of estimates
On Friday, Piper Sandler analysts increased their price target for Broadcom Limited (NASDAQ: NASDAQ:AVGO) stock to $300 from the previous $250, while keeping an Overweight rating. The adjustment follows Broadcom’s announcement of solid results for the April quarter, with both performance and guidance slightly surpassing expectations. The company, now valued at $1.22 trillion, has demonstrated impressive financial health with a 76.26% gross profit margin and 40.3% revenue growth over the last twelve months. According to InvestingPro analysis, the stock appears overvalued at current levels.
Broadcom’s management highlighted strong growth in XPUs, attributing this to customers maintaining or expanding their spending, particularly in areas related to inference. The company anticipates its AI semiconductor segment to grow by approximately 60% year-over-year in the third fiscal quarter, reaching around $5.1 billion.
The management expressed confidence in maintaining this growth rate into 2026. Furthermore, Broadcom is making significant strides on the software front, with most customer conversions to the VCF platform now complete.
Piper Sandler’s analysts noted Broadcom’s strategic positioning to benefit from ongoing AI spending trends, reiterating their Overweight rating alongside the revised price target.
In other recent news, Broadcom Limited has seen several analysts raise their stock price targets, reflecting confidence in the company’s AI growth prospects. Evercore ISI increased their price target to $304, following Broadcom’s earnings report showing AI revenues of $4.4 billion, with projections of $5.1 billion for the upcoming quarter. KeyBanc also raised their target to $315, highlighting strong performance in the AI Networking segment, which saw a 170% year-over-year increase. Deutsche Bank (ETR:DBKGn) adjusted their target to $270, citing Broadcom’s AI business as a significant growth driver, with expectations of a 60% growth rate in fiscal years 2025 and 2026. HSBC raised their target to $240, noting Broadcom’s third-quarter AI revenue guidance of $5.1 billion, surpassing previous estimates.
Morgan Stanley (NYSE:MS) set their price target at $270, emphasizing Broadcom’s solid position in the AI sector and increased visibility for future advancements. Analysts from these firms have maintained positive ratings, such as Overweight or Buy, showing confidence in Broadcom’s long-term outlook. Broadcom’s strong AI revenue momentum and strategic partnerships with companies like META (NASDAQ:META) and ByteDance are seen as key factors in its projected growth. Despite some concerns about competition and market conditions, Broadcom’s guidance and recent performance have generally aligned with or exceeded expectations.
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