Broadcom Inc. Price Target Hikes

Mizuho (NYSE:MFG) and Rosenblatt raised their price targets on Broadcom Inc (NASDAQ:AVGO) after the network chips maker forecasted stronger-than-expected earnings due to robust demand fueled by artificial intelligence.

• Mizuho increased its price target to $245 from $220, maintaining an Outperform rating.
• Rosenblatt raised its price target to $250 from $240, keeping a Buy rating.

The firm reported stronger-than-expected earnings for the November quarter and forecasted significant revenue growth for the current quarter.

Broadcom CEO Hock Tan stated during the earnings call that strong AI-driven demand is expected to continue, with AI revenues projected to exceed $50 billion by 2027, a considerable increase from current figures.

Broadcom’s stock reached a record high of over $207 in aftermarket trading.

Mizuho commented on Broadcom's favorable roadmap, predicting it will surpass competitors in delivering advanced AI network chips.

Rosenblatt analysts forecast that Broadcom’s custom Application-specific integrated circuit (ASIC) 3-nanometer chips are set to ship in spring 2025, ahead of competitors.

The chipmaker has seen significant gains due to heightened AI demand over the past year, in light of the industry's need for advanced network and data center infrastructure.

Broadcom shares have risen over 60% in 2024 so far.