Broadcom's AI Contribution Surge and iPhone 15 Launch Impact: Oppenheimer Justifies Outperform
Portfolio Pulse from Anusuya Lahiri
Oppenheimer analyst Rick Schafer reiterated an Outperform rating on Broadcom (AVGO) with a $900 price target, expecting a revenue of $8.85 billion and EPS of $10.43 for 3Q. AVGO's AI contribution is now 15% of semi-sales, up from 10% in FY22 and expected over 25% in FY24. The upcoming iPhone 15 launch is expected to benefit wireless. The Vmware (VMW) deal is likely to close in FY23. AVGO's 22 core franchises led by DC/cloud networking provide steady long-term growth. Susquehanna analyst Christopher Rolland maintains Broadcom with a Positive and raised the price target from $910 to $1010.
August 25, 2023 | 7:02 pm
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POSITIVE IMPACT
The upcoming iPhone 15 launch is expected to benefit Broadcom, indicating a positive outlook for Apple as well.
The upcoming iPhone 15 launch is expected to benefit Broadcom, which indicates a positive outlook for Apple as well, potentially impacting its stock in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 60
POSITIVE IMPACT
Broadcom's AI contribution is increasing and the upcoming iPhone 15 launch is expected to benefit the company. Analysts maintain a positive outlook with raised price targets.
The positive outlook from analysts, increased AI contribution, and potential benefits from the iPhone 15 launch are likely to positively impact Broadcom's stock in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Custom ASIC expected over $3 billion in FY23 from $2 billion in FY22, driven by Alphabet Inc.
The expected increase in Custom ASIC, driven by Alphabet Inc, indicates a positive outlook for the company, potentially impacting its stock in the short term.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
The Vmware deal is likely to close in FY23, which could impact the company's stock.
The closing of the Vmware deal in FY23 could potentially impact the company's stock, although the exact impact is uncertain at this point.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50