Latest news with #MeliusResearch
Globe and Mail
3 days ago
- Business
- Globe and Mail
Should You Buy the Post-Earnings Dip in Broadcom Stock?
Broadcom (AVGO) shares closed down 5% on Friday after the chipmaker reported a strong fiscal Q2 but issued in-line guidance only for its current financial quarter. However, analysts recommend buying AVGO shares on the post-earnings dip since the company's release indicated continued momentum in its artificial intelligence offerings. Despite today's decline, Broadcom stock is up more than 70% versus its year-to-date low. Buy Broadcom Stock as AI Is Getting Stronger Broadcom guided for $5.1 billion in AI revenue for its current quarter – which translates to a much better-than-expected 60% increase on a year-over-year basis. According to Melius Research analysts, investors should load up on AVGO stock on any dip as 'AI is strong and getting stronger due to incremental opportunities in networking and inferencing.' Melius expects sustained momentum in the company's top line as more of its software customers switch to 'higher-value' VMware subscriptions. Plus, the firm has confidence in Broadcom's ability to sign at least four more AI customers that it believes will contribute rather significantly to its revenue between 2027 and 2030. A dividend yield of 0.95% tied to Broadcom stock makes up for another good reason to have it in your investment portfolio. AVGO Shares Look Headed for $290 What's also worth mentioning is that AVGO doesn't expect its artificial intelligence revenue to grow at an accelerated pace in the near-term only. In fact, the chipmaker forecasts similar growth rate (60% year-on-year) for this year as a whole – and for 2026 as well, which TD Cowen dubbed a 'strong signal of confidence in Broadcom's AI networking and XPU franchises' in a research note today. On Friday, the investment firm raised its price objective on the semiconductor stock to $290 that indicates potential upside of another 18% from current levels. Wall Street Rates Broadcom at 'Strong Buy' Other Wall Street analysts are not as bullish on AVGO shares primarily because they've already had a huge run over the past two months. The consensus rating on Broadcom stock currently sits at ' Strong Buy ' with the mean target of about $253 indicating potential upside of 3% only.
CNBC
4 days ago
- Business
- CNBC
Melius on Broadcom earnings: We see good things coming
Ben Reitzes, Melius Research head of technology research, joins 'Squawk on the Street' to discuss what to expect from Broadcom's quarterly earnings results.
Yahoo
29-05-2025
- Business
- Yahoo
Melius Research Lifts Broadcom (AVGO) PT, Keeps Buy Rating
On May 28, Melius Research raised its price target on Broadcom Inc. (NASDAQ:AVGO) from $198 to $238, while keeping its Buy rating on the stock. The stock has surged more than 70% in the past year, however, the firm still sees accelerating sales for the company. A technician working at a magnified microscope, developing a new integrated circuit. Broadcom Inc. (NASDAQ:AVGO) is expected to benefit from its VMware acquisition and is on track to continue growing its sales of AI Chips, Melius Research analysts said in a research note. The stock has risen 69.51% in a year, the analyst noted that Broadcom Inc. (NASDAQ:AVGO) has materialized better than expected. The company acquired the VMware business back in 2023. VMware is a market leader in cloud computing. Melius' team said they see the acquisition benefitting Broadcom in accelerating its sales of AI chips, particularly custom AI accelerators and networking chips. The analysts expect a CAGR of 43% for AI chips through 2027. There is more left in the tank of Broadcom Inc. (NASDAQ:AVGO) as AI customers' success is picking up and the execution remains strong, said Melius Research analysts. The company grew its revenue by 24.71% year-over-year in Q1 2025, with a sharp 315.32% improvement in net income. While we acknowledge the potential of AVGO as an investment, 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 . READ NEXT: and . Disclosure: None. Sign in to access your portfolio
Bloomberg
22-05-2025
- Business
- Bloomberg
Target's Troubles Leave Analysts Most Negative Since 2018
Wall Street's enthusiasm for Target Corp. is at its lowest in more than six years, as disappointing earnings from the big-box retailer spur a series of analyst downgrades. Analysts at Bank of America, Melius Research LLC and Telsey Advisory Group all stepped back from their buy-equivalent calls since the company's earnings report on Wednesday, flagging issues including the difficult macroeconomic backdrop, an uncertain outlook and exposure to President Donald Trump's tariff policies.
Globe and Mail
16-05-2025
- Business
- Globe and Mail
Nvidia Had a $900 MILLION Bet on CoreWeave in Q1. How Should You Play CRWV Stock Here?
CoreWeave (CRWV) has been in a sharp uptrend in recent sessions as investors continue to cheer its exceptional growth in Q1. Plus, a regulatory filing confirmed this week that Nvidia (NVDA) ended the first quarter with a $900 million stake in the AI infrastructure firm as well. Including its post-earnings gain, CoreWeave stock is up a whopping 140% versus its recent 1-month low. Is It Time to Move to the Sidelines in CoreWeave Stock? CoreWeave saw its revenue soar by more than 400% on a year-over-year basis to $982 million in Q1, indicating extraordinary demand that dismissed broader concerns of an AI slowdown. The artificial intelligence company sees its revenue coming in at $5 billion this year, which would mean a staggering 4.6x growth versus 2024. Additionally, Nvidia's latest filing confirms that CRWV has its vote of confidence as well. Still, Ben Reitzes, a senior Melius Research analyst, says there are significantly better means of gaining exposure to the AI infrastructure market than CoreWeave stock in 2025. His $67 price target on CRWV shares indicates potential downside of more than 15% from here. Why Is Reitzes Cautious on CRWV Shares for 2025? Ben Reitzes is not particularly fond of CoreWeave's reliance on asset-backed financing. In a recent interview with CNBC, he also called out the firm's guidance for up to $23 billion of capital expenditures in 2025 as it assumes a 'ton of terminal growth,' which he's not entirely convinced will come to pass. Another major red flag on the AI stock is the negative $19 billion its management expects in free cash flow this year. Reitzes agreed that CoreWeave was increasingly emerging as an exciting name but said the likes of Nvidia and Broadcom (AVGO) were still better as AI infrastructure plays since they offer much more stability. It just 'doesn't get better than' NVDA and AVGO, he argued in the said interview. What Is Wall Street's Recommendation for CoreWeave? Note that other Wall Street analysts are significantly more bearish on CoreWeave stock for 2025. According to Barchart, the consensus rating on CRWV shares currently sits at 'Moderate Buy' but the mean target of about $50 indicates potential downside of more than 35% from current levels.
