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Mizuho Analyst Reaffirms Bullish Stance on Broadcom as AI Chip Demand Surges
Mizuho Analyst Reaffirms Bullish Stance on Broadcom as AI Chip Demand Surges
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BTCCSquare news:
Vijay Rakesh, Mizuho's top semiconductor analyst, maintains a $410 price target on Broadcom (AVGO) following management discussions, branding the company the 'King of AI Custom Silicon.' Broadcom shares have soared 46% YTD on booming demand for its application-specific integrated circuits (ASICs), with Rakesh noting 'accelerating ASIC revenues and broadening engagements.'
The analyst addressed investor concerns about margin pressures from Broadcom's partnership with a fourth AI client—believed to be OpenAI—projecting $10B-$24B in rack revenues between FY26-FY28. While gross margins may compress by 166-286 basis points during this period, the EPS impact appears manageable given the scale of AI-driven growth.
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