Mizuho Lifts Broadcom Target Amid Strong AI Market Prospects
Source: Pixabay
According to the analysis, Broadcom Inc. (NASDAQ:AVGO) is expected to experience substantial growth by fiscal year 2027, with AI Custom Silicon anticipated to secure 60-70% of the $60-90 billion serviceable accessible market. Additionally, the study highlights Broadcom's dominance in the networking market, which is supported by its proprietary SerDes IP and an array of Ethernet switches, such as the StrataXGS/DNX Tomahawk5/6 and Jericho, which are expected to support rates of up to 102.4 Tbps.
Additionally, the analysis makes note of the company's financials, which are set apart by industry-leading operating and gross margins, anticipated to be approximately 79% and 66%, respectively, for the fiscal year 2025.
One of the world's top tech firms, Broadcom Inc. (NASDAQ:AVGO) is well-known for its software and hardware products. The company's key competence is in offering networking and custom chips for a wide range of applications.
While we acknowledge the potential of AVGO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AVGO and that has 100x upside potential, check out our report about the cheapest AI stock.
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