Analysts are bullish ahead of Broadcom's (NASDAQ:AVGO) "Enabling AI Infrastructure Investor Meeting" on Wednesday, with Mizuho and Barclays both releasing notes on the stock.
Analysts at Mizuho said the event will focus exclusively on the company's merchant silicon, ethernet, and networking business.
The firm also said it is unclear if AVGO will update or give new financial forecasts for AI-related revenue and growth. However, they note that they are not going to discuss or forecast their large and high-growth custom silicon (or ASIC chips) business.
As a result, Mizuho is "not so sure you get a lot of incremental news today that would pop the stock."
Mizuho sees the event as more informational than a catalyst for the stock in the near term. "That said, AVGO still remains one of our top semi-AI long plays for '24 onward," analysts wrote. "Management is best in class at under-promising and over-delivering and I think they will do it again in a qtr or two."
Meanwhile, Barclays reinstated AVGO at Overweight in a note Wednesday, assigning the stock a $1,405 price target. The firm said the company is "well positioned in AI with franchise custom silicon and switching businesses, and features a software business that provides diversification and supports industry-leading profitability."
"The company joins our preferred names this year as another way to play the 2nd Wave of AI via a best-in-class data center silicon portfolio," analysts at Barclays wrote. "We see potential for upside, likely due to acceleration of AI spend."