Seaport Research Downgrades Broadcom (AVGO) to Neutral, Cites Industry Limits

Broadcom Inc. (NASDAQ:AVGO) is included among the 15 Best Cheap Dividend Stocks to Buy.

On April 8, Seaport Research downgraded Broadcom Inc. (NASDAQ:AVGO) to Neutral from Buy and did not assign a price target. The firm still described Broadcom as “the leading competitor” to Nvidia in AI compute. At the same time, it noted that the company is starting to run into the same industry limits that Nvidia faces. It pointed to ongoing supply constraints. It also said Broadcom is “increasingly getting drawn into the market for financing customers.” The business continues to perform well, but the firm believes those gains are already reflected in consensus expectations.

A Reuters report on April 7 said Broadcom signed a long-term agreement with Google. The deal covers the development and supply of custom AI chips for Google’s next-generation infrastructure through 2031. Broadcom also reached an agreement with Anthropic. The deal gives Anthropic access to about 3.5 gigawatts of AI computing power using Google’s processors starting in 2027.

The report added that demand for custom chips, including Google’s TPUs, is increasing as companies look beyond Nvidia GPUs. Anthropic said the agreement supports its $50 billion infrastructure push. It also noted that its Claude model’s annualized revenue has surpassed $30 billion in 2026.

Broadcom Inc. (NASDAQ:AVGO) is a global technology company that designs, develops, and supplies semiconductors, enterprise software, and security solutions. It operates through two segments: semiconductor solutions and infrastructure software.

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