Overview
- A new round of positive write-ups includes an upgrade to buy that highlights a reported fifth XPU customer with an estimated $1 billion order.
- Shares fell about 13% after Broadcom’s Q4 and FY25 beats as investors focused on AI spending mix concerns.
- AI semiconductor revenue rose 74% year over year, and coverage cites a roughly $73 billion AI-related backlog as a key support for future sales.
- Bernstein reiterated an Outperform rating with a $475 price target and argued competition worries are overblown after a management meeting.
- Commentary points to VMware’s high-margin software revenue as a stabilizer that balances semiconductor cyclicality.