Redburn Atlantic Initiates Broadcom (AVGO) at Buy With $301 Target, Citing AI Growth Potential

We recently published a list of 12 AI Stocks on Latest News and Ratings. In this article, we are going to take a look at where Broadcom Inc. (NASDAQ:AVGO) stands against other AI stocks on latest news and ratings.

On May 28, Redburn-Atlantic began coverage on Broadcom Inc. (NASDAQ:AVGO) with a “Buy” rating and set a price target of $301. Broadcom is a technology company uniquely positioned in the AI revolution owing to its custom chip offerings and networking assets.

Redburn analyst Mike Harrison highlighted Broadcom as a leading ASIC co-partner with a strong customer pipeline. The company boasts a noteworthy presence in AI data centers, with the recent acquisition of VMware seen as a strategic move that strengthens its offerings in cloud and AI-related services. It also boosts its position in the private cloud market, particularly for Generation AI technologies.

The firm forecasts Broadcom’s revenue to be 6% above consensus estimates, driven by the company’s strong market positioning and anticipated growth in the coming years. The company has demonstrated an impressive 40.3% revenue growth in the past twelve months and impressive gross profit margins of 76.3%.

Overall, the firm views significant upside potential for Broadcom’s stock.

“Broadcom is arguably the pre-eminent ASICs co-partner with a strong pipeline of future customers.”

-Harrison said in the note, directing to its involvement across multiple GenAI silicon programs, including with Meta, Apple, and OpenAI.

“We think that consensus is not giving Broadcom sufficient credit for the strength of its ASICs pipeline,” the analyst added.

Overall, AVGO ranks 5th on our list of AI stocks on latest news and ratings. While we acknowledge the potential of AVGO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AVGO and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.