On June 3, JPMorgan analysts affirmed an ‘Overweight’ rating and $250 price target for Broadcom Inc. (NASDAQ:AVGO) ahead of the company’s earnings report.
A leading semiconductor chip on a computer robot arm, reflecting the technology advances of the company.
In a research note, the analysts highlighted robust demand for Broadcom’s artificial intelligence (AI) products, including custom application-specific integrated circuits (ASICs) and networking solutions. They noted stabilization in the company’s non-AI semiconductor business across enterprise, server/storage, broadband, and wireless sectors. Also, the analysts stated that increased revenue opportunities from the VMware acquisition continue to provide additional upside.
JPMorgan expects Broadcom’s Q2 FY2025 results to meet or exceed both their estimates and consensus expectations. Additionally, the firm predicts 5-7% quarter-over-quarter revenue growth for the July quarter (Q3 FY2025). Again, strong AI demand is expected to drive this growth. Their July quarter revenue estimate of $16.1 billion surpasses consensus forecasts. Broadcom’s AI-related revenue is expected to go over $5 billion, beating the $4.8 billion estimate. This is due to the high demand for AI solutions, which is boosting the company’s financial growth.
Broadcom Inc. is a global technology company that designs, develops, and supplies semiconductor and infrastructure software solutions. It produces chips for networking, broadband, wireless, storage, and industrial applications, along with software for cybersecurity, data centers, and enterprise IT.
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