Miss NVIDIA? Don’t worry, another chip company’s performance might explode! Author of

© Reuters Missing NVIDIA? Don’t worry, another chip company’s performance might explode! – Broadcom (NASDAQ: ) rose 2.7% before the market opened on Tuesday (30th) Several Wall Street analysts recently expressed positive views on Broadcom after Broadcom renewed its contract with Apple (NASDAQ: ).

Analysts at KeyBanc believe that the contract renewal with Apple and demand for artificial intelligence are expected to support Broadcom’s performance and outlook. The analyst also raised his price target on Broadcom to $820 from $720 previously.

Analysts said in a report: “While the market is generally concerned about the slowdown in cloud computing, enterprise and service provider capital expenditure growth and its impact on the company’s backlog, due to artificial intelligence demand trends and the long-term contract and recently renewed with Apple Broadcom’s market sentiment is slightly positive because of the deal. “

At the same time, BMO analysts raised Broadcom’s target price to $890, the highest level in the current market.

Analysts said: “Broadcom will announce its earnings this week. The overall background is favorable for the semiconductor industry and the company, especially the recent renewal of the contract with Apple and the cases of intelligence artificial. We think Broadcom will benefit from this.”

Analysts at JPMorgan Chase believe that Meta Platforms (NASDAQ: ) could also become the next chip customer to place an order of more than US$1 billion at Broadcom (NASDAQ: ). “We believe that Meta will become Broadcom’s next $1 billion ASIC chip customer within the next two years,” JPMorgan wrote in the report.

Broadcom’s ASIC chips continue to receive strong orders from major customers, including Alphabet, analysts said. Broadcom previously said it expects to ship $3 billion in ASICs this year, a 50% increase compared to 2022.

They also wrote, “We believe Google’s recent increase in orders for TPU AI processors suggests that Google’s TPU processor program alone will be enough to drive Broadcom’s $3B+ revenue, suggesting cloud ASIC revenue targets could be higher this year by the previously anticipated managers. Google’s order to Broadcom could lead to over $4 billion in TPU chip sales next year (30-50% YoY growth).”

Overall, the analyst believes that Broadcom will see “increasing demand for custom silicon designs as major cloud computing giants and OEMs look to their software frameworks to improve performance, lower power consumption, lower cost and achieve differentiation.” In this trend, Broadcom will be a strong beneficiary of these trends.”

Additionally, analysts at Bank of America, CFRA, Susquehanna, and Oppenheimer recently upgraded their ratings on Broadcom.

Broadcom is expected to report quarterly earnings on Thursday.

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Compiler: Liu Chuan


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