This Analyst’s Prediction About Broadcom (AVGO) Was Right

We recently published 10 AI Analyst Calls You Should Pay Attention To. Broadcom Inc. (NASDAQ:AVGO) is one of the stocks analysts were recently talking about.

Ben Reitzes, Melius Research’s head of technology research, praised Broadcom CEO Hock Tan during a program in June on CNBC. He said the company will remain a winner due to the growing demand for custom chips.

“He’s one of the best operators in the business. He really tends to deliver and I think he’s also a great communicator. I think that one of the things that he’s done that’s pretty interesting is that he set targets for a serviceable addressable market that’s pretty large from his largest hyperscaler customers by 2027, 60 to 90 billion. And that’s just three customers. And he recently announced that they’re up to seven customers. So, if he can update any of the long-term addressable market from all these additional AI customers, that could be pretty good thing. And I think that this custom silicon trend where certain workloads are being run on companies that use Broadcom Inc (NASDAQ:AVGO) to design the chips is going to keep going and Hock’s a winner in that category and we see good things coming.”

The stock is up 25% since the analyst’s comments.

Macquarie Core Equity Fund stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its second quarter 2025 investor letter:

“Broadcom Inc. (NASDAQ:AVGO) also had an exceptional run of over 65% in the quarter on renewed AI optimism and continued broadening of its customer base for custom AI silicon (chips). Our slight underweight of the security was consequential given the company’s strong return.”

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