Investing.com– Mizuho (NYSE:MFG) and Rosenblatt hiked their price targets on Broadcom Inc (NASDAQ:AVGO) after the network chips maker forecast stronger-than-expected earnings for the current quarter on robust artificial intelligence-fueled demand.
Mizuho hiked its PT to $245 from $220 and reiterated its Outperform rating, while Rosenblatt raised its PT to $250 from $240 and maintained its Buy rating.
The firm clocked stronger-than-expected earnings for the November quarter, and also forecast stronger-than-expected revenue growth for the current quarter.
Broadcom CEO Hock Tan said during the company’s earnings call that the firm is expected to continue seeing strong AI-fueled demand. He forecast AI revenues of more than $50 billion by 2027- a significant jump from current levels.
Broadcom’s stock hit a record high of over $207 in aftermarket trade.
Mizuho said it saw a good roadmap for Broadcom, and that it was likely to outpace its peers in rolling out advanced AI network chips.
Rosenblatt analysts said Broadcom’s custom Application-specific integrated circuit 3 nanometer chips are expected to ship in spring 2025, well ahead of any competitors.
The chipmaker has benefited greatly from increased AI-fueled demand over the past year, given that the industry requires advanced network and data centre infrastructure.
Broadcom shares are trading up more than 60% so far in 2024.