📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

Oppenheimer maintains bullish rating on Broadcom following management meeting

Published 06/14/2024, 09:46 AM
Updated 06/14/2024, 09:48 AM
© Reuters.  Oppenheimer maintains bullish rating on Broadcom (AVGO) following management meeting

Analysts at Oppenheimer met with Broadcom (NASDAQ:AVGO) CEO Hock Tan, President Charlie Kawwas, CFO Kirsten Spears, and Director of IR Ji Yoo on Thursday and maintained their bullish stance on the stock.

The investment firm said the tone of the meeting was upbeat following the company's solid beat and raise on Wednesday. Management reportedly highlighted its VMware strategy and custom ASIC opportunity.

Outperform-rated AVGO "secured next-gen custom ASIC design wins for two of three hyperscale customers," analysts believe, including TPUv7.

"AVGO's durable custom ASIC leadership stems from breadth of semi IP cores, incumbency with major CSP platform, and specialized knowledge/expertise developed over the past decade-plus," the firm said. "MRVL [is] likely the only credible competitor, in our view, for large-scale CSP custom compute projects."

Analysts also noted that Broadcom management sees a custom ASIC opportunity geared toward internal CSP workloads vs. the public cloud.

In addition, AVGO is said to be on track to deliver CPO PoCs to two CSPs this summer, with management seeing CPO power savings of ~50% as a primary motivator and ~40% cost savings as a secondary benefit.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.