Broadcom (NASDAQ:AVGO)
On Tuesday, Broadcom stock rose by more than 7% due to comments made by Wall Street analysts who stated that the Broadcom (NASDAQ:AVGO) infrastructure results will likely be “resilient” soon.
Analyst John Vinh from KeyBanc Capital Markets said that the company benefits from multiple upgrade cycles in networking and broadband. He also said the company benefits from the demand for custom ASICs associated with generative artificial intelligence, using Google’s TPUs as an example.
Vinh wrote in an investor note that he anticipates AVGO will post results “in line to slightly higher” than their previous projections.
Vinh also mentioned that investor sentiment on Broadcom (AVGO) is “slightly positive,” citing recent developments in generative artificial intelligence as well as the recent deal that the company made with Apple.
As Broadcom works on the design of Google’s six-generation chip, which is scheduled to be launched in either 2024 or 205, a J.P. Morgan analyst named Harlan Sur said that the company might see more than $4 billion in TPU chip sales the following year. Sur also said Broadcom stock may gain from other companies, like Meta, attempting to develop their unique processors.
According to what Sur stated in an investor letter, “The company should be a strong beneficiary of the trends towards more custom chip designs as large cloud titans/OEMs look to drive more performance/power/cost/differentiation alongside their software frameworks.”
On June 1, after the market has closed, Broadcom will release the company’s financial results for the second quarter.
Analysts have concluded that earnings will be $10.12 per share and revenue will be $8.7 billion.
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