Street View: Broadcom's AI momentum to outpace market expectations, say analysts

Broadcom AVGO.O forecast Q3 revenue above Wall St estimates on Thursday, betting on strong demand for its networking and custom AI computing chips.

Shares of networking and custom AI chipmaker fall 3.8% to $249.78 in premarket trading

CHIPS, CLOUD, AND CONNECTIVITY

JP Morgan ("overweight," PT: $325) is optimistic about co’s strong AI momentum - driven by next-gen chip ramps, custom silicon wins, and robust cloud demand - significantly outpacing market expectations

Morgan Stanley ("overweight," PT: $270) says co has strongest AI networking growth prospects due to its leadership in high-speed interconnects and infrastructure, outpacing Nvidia NVDA.O and Marvell MRVL.O in this segment

TD Cowen ("buy," PT: $290) believes co’s networking segment will grow and perform well due to its strong product lineup and rising demand from AI-related infrastructure

"Despite the lack of punchy upside surprises this call, we remain encouraged by commentary indicating that Broadcom is progressing with multiple hyperscale customers on AI accelerators and its broader networking franchise" adds brokerage

Piper Sandler ("overweight," PT: $300) says co is well-positioned for future growth, driven by strong momentum in AI semiconductors and successful execution in transitioning its software business