Mizuho Lowers Broadcom Price Target to $250

Mizuho analyst Vijay Rakesh lowered the price target on Broadcom Limited (NASDAQ: AVGO) to $250 (from $260) while maintaining an Outperform rating.

“AVGO reported strong JanQ results and AprQ guidance at ‾$14.9B, above $14.6B guide, with good GM and AI ramps.

Key to note: 1) Custom XPU for AI customers now at 7, with 3 shipping, 2 taping out in 2025E, and 2 NEW deeply engaged, 2) AprQ AI revenue guide $4.4B, up 7% q/q and reaffirming $60-90B SAM with upside from 4 new XPU engagements, 2) accelerated opex focusing on 2nm AI XPU tape-out, doubling Tomahawk 5 capacity and Tomahawk 6 development, 3) AprQ Storage/Broadband/Wireless/Industrial guided up HSD%/DD%/down 20%/down q/q, and 4)Infra SW AprQ guided down ‾3% q/q (JanQ $6.7B); VMWare has >70% largest 10k customers on VCF solutions.With its industry-leading F25E GM/OM at ‾79%/64% and FCF/year potentially growing to ‾$33B in F25E, reiterate Outperform, raise ests and adjust PT to $250 (prior $260).”

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