JPMorgan analyst Harlan Sur initiated coverage of Broadcom Inc (NASDAQ:AVGO) with an Overweight rating and a $1,550 price target.
The firm also added Broadcom to its U.S. Equity Analyst Focus List, a growth idea.
As per the analyst, Broadcom is a technology infrastructure powerhouse with semiconductor leadership positions in AI (#2 global AI semiconductor supplier with $8 billion+ in calendar year 2024 estimated revenues), custom chip ASIC supplier ($12 billion per year), cloud datacenter/telco networking, wireless, enterprise storage, and broadband-connected home combined with a rock solid backbone of mission-critical infrastructure software business.
The market continues to overlook the diversification story in its semiconductor and mission-critical software infrastructure franchises combined with strong free cash flow generation of the business, Sur noted.
In its semiconductor franchise (60% of sales), the team has a leadership position in accelerated/compute AI, cloud/telco networking,
The analyst said broadband and storage allowed the team to drive above-industry-average growth.
Over the past three years, the team has driven an ...