Benchmark Boosts Broadcom’s (AVGO) Price Target Amid AI Chip Growth
Benchmark has increased its price target for Broadcom Inc. (AVGO) to $485 from $385, maintaining a Buy rating due to robust growth in the AI semiconductor industry. The company's AI semiconductor division reported $6.5 billion in Q4, a 76% year-over-year increase, with significant orders from major clients like Anthropic, Meta, and Google, while also securing a $1 billion contract with OpenAI. However, concerns remain regarding the company's reliance on a few large AI customers and potential margin compression due to the increasing proportion of lower-margin AI revenue.
https://finance.yahoo.com/news/benchmark-boosts-broadcom-avgo-price-141034796.html