Overview

• Macquarie initiated Broadcom with an Outperform rating and a $420 price target, arguing the company is well positioned for artificial intelligence.
• Macquarie forecast a 72% global AI ASIC market CAGR from 2025 to 2028 and projected Broadcom could capture more than 70% share, reflecting faster growth than GPUs.
• Mizuho reaffirmed Outperform and raised its price target to $410 after Broadcom reported strong results and lifted its fiscal 2026 AI revenue outlook.
• Analyst commentary highlighted the VMware-driven software expansion, noting operating profit margin rose to 66% from 62%, which supports more stable margins and free cash flow.
• Broadcom shares fell 3.84% on Wednesday after China opened anti-dumping probes into certain US-made analog ICs that named the company, and Broadcom had not commented as a local industry group cited dumping margins above 300%.