Broadcom Rises As Top AI Chip Supplier After Nvidia, Thanks To Google And Meta Partnerships: Analyst
Portfolio Pulse from Anusuya Lahiri
Broadcom Inc (NASDAQ:AVGO) has seen significant growth, becoming the second-largest AI chip supplier after Nvidia, thanks to partnerships with Google and Meta. JPMorgan analyst Harlan Sur reiterated an Overweight rating on Broadcom with a price target of $1,700. Broadcom expects substantial AI-related revenues in 2024 and 2025, driven by deals with Google and Meta. However, potential price increases from Taiwan Semiconductor Manufacturing Co (NYSE:TSM) could impact margins. Investors can gain exposure to Broadcom through ETFs like Amplify Cybersecurity ETF (NYSE:HACK) and Pacer Data And Digital Revolution ETF (NYSE:TRFK).
June 06, 2024 | 4:32 pm
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NEGATIVE IMPACT
Taiwan Semiconductor Manufacturing Co's plans to boost prices of its services could impact the margins of its customers, including Broadcom.
TSMC's price increases could negatively affect the margins of its customers, including Broadcom, which may impact their profitability.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Broadcom has become the second-largest AI chip supplier, driven by partnerships with Google and Meta. The company expects significant AI-related revenues in 2024 and 2025. JPMorgan analyst Harlan Sur reiterated an Overweight rating with a $1,700 price target.
Broadcom's partnerships with Google and Meta are expected to drive substantial AI-related revenues, supporting the positive outlook and price target set by JPMorgan. This news is highly relevant and important for Broadcom investors.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Google's partnership with Broadcom for AI chip development is expected to generate significant revenues for Broadcom, highlighting Google's investment in AI technology.
Google's collaboration with Broadcom on AI chips underscores its commitment to advancing AI technology, which is positive for both companies.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
Investors can gain exposure to Broadcom through the Amplify Cybersecurity ETF (HACK), which includes Broadcom in its portfolio.
The Amplify Cybersecurity ETF includes Broadcom in its portfolio, providing investors with indirect exposure to Broadcom's growth.
CONFIDENCE 60
IMPORTANCE 40
RELEVANCE 30
POSITIVE IMPACT
Meta's partnership with Broadcom for AI chip development is expected to drive significant revenues for Broadcom, highlighting Meta's investment in AI technology.
Meta's collaboration with Broadcom on AI chips underscores its commitment to advancing AI technology, which is positive for both companies.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
Investors can gain exposure to Broadcom through the Pacer Data And Digital Revolution ETF (TRFK), which includes Broadcom in its portfolio.
The Pacer Data And Digital Revolution ETF includes Broadcom in its portfolio, providing investors with indirect exposure to Broadcom's growth.
CONFIDENCE 60
IMPORTANCE 40
RELEVANCE 30