Overview
- Mizuho reiterated Broadcom as a Top Pick with an Outperform rating and a $410 price target, calling the company the “King of AI Custom Silicon.”
- Mizuho’s analysis points to only modest earnings impact from AI rack and ASIC deals, estimating gross-margin dilution that translates to about a 3%–4% EPS effect.
- Broadcom disclosed a $10 billion order from OpenAI and raised its fiscal 2026 AI revenue growth outlook to roughly 50%–60%, projecting about $6.2 billion in AI chip sales next quarter.
- The company reported record fiscal Q3 2025 revenue of around $16 billion, with AI revenue up 63% year over year to $5.2 billion after an extended growth streak.
- Broadcom’s new collaboration with Japan’s NTT targets optical semiconductor packages by 2026 that could double processing speed and cut data-center power use by up to 50%, as the stock shows roughly 45% gains year to date.