According to a research report published by Jefferies, Broadcom's growth guidelines for the first fiscal quarter of next year are in line with expectations. AI revenue increased 18% quarterly to 3.7 billion US dollars last quarter, higher than the bank's forecast of 3.5 billion US dollars, mainly driven by networking artificial intelligence (Networking AI). Management revealed that the customer has plans to deploy 1 million XPU clusters. Jefferies said that with the growth of AI ASIC chips, the company's AI revenue may reach 60 billion to 90 billion US dollars by fiscal year 2027.
According to the bank, although it may not see more AI trends until the second half of next year, it is believed that the market will once again show interest in Broadcom. The AI ASIC chip bull market forecast scenario may unfold ahead of schedule, giving it a “buy” rating, and the target price will be raised from 205 US dollars to 225 US dollars.
