Broadcom Could Report A Modest Beat For Q2, Says Bullish Analyst
Portfolio Pulse from Priya Nigam
Broadcom Inc (NASDAQ:AVGO) is expected to report a modest beat for its fiscal second-quarter results on June 12, driven by strength in AI. Analyst Vivek Arya from BofA Securities maintained a Buy rating and a price target of $1,680 on the stock. The company is likely to reiterate its fiscal 2024 sales outlook of around $50 billion. However, there are concerns about gross margin pressure due to more custom chips and competition from NVIDIA Corp (NASDAQ:NVDA).
June 10, 2024 | 4:41 pm
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NEUTRAL IMPACT
NVIDIA is mentioned as a competitor to Broadcom in the AI semiconductor space, particularly with its Ethernet switch and network interface cards.
While NVIDIA is mentioned as a competitor, the primary focus of the article is on Broadcom's expected earnings beat. The impact on NVIDIA's stock is likely neutral in the short term.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Broadcom is expected to report a modest beat for its fiscal Q2 results, driven by AI strength. BofA Securities maintains a Buy rating with a $1,680 price target. The company is likely to reiterate its fiscal 2024 sales outlook of around $50 billion.
The positive earnings expectation and maintained Buy rating with a high price target are likely to boost investor confidence in the short term. The reiteration of the fiscal 2024 sales outlook further supports a positive sentiment.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Alphabet Inc (Google) is mentioned as a customer for Broadcom's custom chips, contributing to the positive outlook for Broadcom's AI segment.
Alphabet's use of Broadcom's custom chips supports the positive outlook for Broadcom's AI segment, indirectly benefiting Alphabet by association.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 30
POSITIVE IMPACT
Alphabet Inc (Google) is mentioned as a customer for Broadcom's custom chips, contributing to the positive outlook for Broadcom's AI segment.
Alphabet's use of Broadcom's custom chips supports the positive outlook for Broadcom's AI segment, indirectly benefiting Alphabet by association.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 30
POSITIVE IMPACT
Meta Platforms Inc is mentioned as a customer for Broadcom's custom chips, contributing to the positive outlook for Broadcom's AI segment.
Meta's use of Broadcom's custom chips supports the positive outlook for Broadcom's AI segment, indirectly benefiting Meta by association.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 30
POSITIVE IMPACT
VMWare Inc's renewal activity with Broadcom could boost Broadcom's estimates, contributing to the positive outlook.
VMWare's renewal activity with Broadcom is a positive factor that could boost Broadcom's estimates, indirectly benefiting VMWare by association.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 40