Reported 3 months ago
Morgan Stanley analysts expressed confidence in chip giant Broadcom on July 17, 2024, maintaining an 'overweight' investment rating and citing the company's ability to capitalize on the growing demand in the artificial intelligence (AI) industry. Broadcom expects AI to bring in over $150 billion in revenue within the next five years. Despite a 1.7% dip early on the 16th, Broadcom's stock closed with a 1.19% decrease at $169.38, outperforming competitor Nvidia's 1.62% fall. With Broadcom leading in the application-specific integrated circuit (ASIC) market, Morgan Stanley sees strong revenue and profit growth potential for the company, driven by AI technology development and non-AI semiconductor business. Analysts anticipate Broadcom's revenue from AI to have a 30-40% annual growth rate, with a $200 price target. Cowen also raised Broadcom's target price from $175 to $210, citing the company's unique semiconductor technology and software advantages aligning with major tech trends like AI and telecom expansion.
Source: YAHOO