Citi analysts on Monday raised Broadcom Inc. (NASDAQ:AVGO)’s price target to $276 from $210 and reiterated a Buy rating for the stock.
A technician working at a magnified microscope, developing a new integrated circuit.
The revision comes ahead of the company’s second quarter results for fiscal year 2025, which are set to be released this Thursday. Analysts at Citi expect Broadcom Inc. to surpass consensus estimates and attribute their optimism to the company’s thriving AI segment.
Despite Broadcom Inc.’s non-AI-semiconductor business experiencing a slight downturn in recent times, Citi analysts believe the company’s AI operations will help counteract the gross margin dilution.
In other news, Morgan Stanley also recently shared a bullish analysis on the stock. The firm expects Broadcom Inc. to report strong results for Q2 and is seeing an inflection in its growth rate for the custom silicon business. The company’s shares rose 2.74% on Monday to close at $248.71.
Broadcom Inc. is a leading developer, manufacturer, and supplier of semiconductor and infrastructure software products. The company has a diverse revenue stream, which provides it a competitive edge by ensuring consistently high revenues through quarters.
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