Jefferies Reiterates Buy on Broadcom with $500 Target, Cites AI Chip Lead
Jefferies repeated its Buy rating on Broadcom with a $500 price target, naming it Top Pick based on strong fundamentals and AI chip leadership. The firm projects Google will buy 6 million AI chip units in 2027—85–90% supplied by Broadcom—and forecasts faster networking growth from TH6 ramp and DSP share gains.
1. Jefferies Rating and Top Pick Status
Jefferies reiterated its Buy rating on Broadcom, assigned a $500 price target and designated the stock as its Top Pick, citing strong fundamentals and leadership in AI-focused custom chips.
2. AI Chip Leadership and Demand Outlook
Jefferies’ model anticipates Google purchasing 6 million Broadcom AI chip units in calendar-2027, capturing 85–90% of that volume, and expects Broadcom’s custom on-package v8ax and v9 chips to outpace MediaTek equivalents in performance and availability.
3. Networking Business Acceleration
The networking segment is set to accelerate through the quarter, driven by the TH6 switch ramp, DSP share gains and robust growth in China markets.