Broadcom rises after HSBC raises to "buy" on custom chip strength

Brokerage HSBC upgrades chipmaker Broadcom AVGO.O to "buy" from "hold"; raises PT to $400 from $240

Shares of AVGO rise 3.5% to $262.66

New PT implies a ~52.9% upside to the stock's last close

Brokerage sees better-than-expected potential in Broadcom’s ASIC (custom chip) business and says that it will significantly beat market expectations

Broadcom’s ASIC revenues are forecast to grow strongly, as more AI spending shifts toward these custom chips-brokerage says

Brokerage expects custom chip revenue for 2026 and 2027 to be much higher than current market estimates

Earlier concerns about Broadcom losing wireless business from Apple and a slowdown at VMware are now less of a worry, as new data shows these risks are smaller than feared - HSBC

Including session's moves, AVGO stock up ~13% YTD