Overview
- Bernstein’s Stacy Rasgon reiterated an Outperform rating with a $475 target after CES meetings, saying worries about competition and customer‑owned tooling are overblown given Broadcom’s 3D stacking, 400G SerDes, packaging depth and XPU roadmap.
- Rasgon relayed Charlie Kawwas’ comments that Google TPU v7 shipments should expand from hundreds of thousands in 2025 to many millions in 2026, with TPU v8 reaching hundreds of thousands per month soon and millions by year‑end, and that orders exceed the previously disclosed $73 billion figure.
- Broadcom issued $4.5 billion in senior notes on Jan. 12 for general corporate purposes and to repay existing loans, signaling balance‑sheet flexibility to support AI investments.
- On Jan. 6 the company expanded its Wi‑Fi 8 lineup with the BCM4918 APU plus BCM6714 and BCM6719, targeting AI‑driven use cases with compute acceleration, high throughput, low latency, enhanced security and power efficiency.
- Wall Street turned more positive this week: Wells Fargo upgraded to Overweight with a $430 target, Mizuho raised its target to $480, UBS lifted to $475, KeyBanc reiterated Buy at $500, and Goldman Sachs kept a Buy at $450 on its Conviction List.