Buzz-Street View: Broadcom's pipeline soothes AI spending doubts
AVGO•Analyst views focus on execution and long-term visibility
- TD Cowen (
"buy," PT: $475) says co remains well-positioned in the custom AI chip market, supported by its partnership with GoogleGOOGL.Oand a growing pipeline of projects with MetaMETA.O, Anthropic, and OpenAI. - StoneX (
"buy," PT: $545) says "the outlook moves the investment debate beyond the size of the quarterly beat and toward execution against a rare two-year visibility window". - Summit Insights Group says while investors remain wary of margin pressure from co's custom chip business, robust revenue growth should help lift operating margins through fiscal 2027.
- Morningstar (fair value: $650) "believes stronger, long-term guidance should help assuage concerns over competitive position and the durability of AI spending".
Broadcom projects strong AI chip sales over the next two years
Chipmaker Broadcom AVGO.O on Wednesday projected strong AI chip sales over the next two years, adding to evidence that major technology companies continue to spend aggressively on AI infrastructure.
Co forecast Q4 revenue of about $34.8 billion, below analysts' expectations of $35.03 billion.
Shares down 3.26% in premarket trading.
