FINWIRES · TerminalLIVE
FINWIRES

Broadcom's AI Growth on Track, New Customers Likely to Ramp Deals, BofA Securities Says

By

Broadcom's (AVGO) fiscal Q2 results and Q3 guidance only modestly exceeded Street expectations, but its AI growth remains on track for about 180% year-over-year in fiscal 2026 and almost 100% in fiscal 2027, BofA Securities said in a note Thursday.

Broadcom's visibility in its AI compute program now extends into 2028, with multiple new customers, including Amazon-backed (AMZN) Anthropic, Meta (META), and Open AI expected to ramp purchase agreements over the next few years, according to the note.

The company's Software growth outlook of over 30% in fiscal Q3 suggests there are multiple growth vectors within the AI theme, the brokerage said, adding it expects earnings per share to exceed $30 by calendar year 2030, implying a compound annual EPS growth rate of about 40% between 2025 and 2030.

However, BofA flagged gross margin pressure as the custom chip mix continues to increase, noting that Broadcom is facing higher competition as clients diversify their suppliers and move away from exclusivity.

BofA Securities kept a buy rating on Broadcom and raised the price target to $530 from $450.

Shares of Broadcom were down 15% in Thursday trading.

Price: $407.18, Change: $-72.05, Percent Change: -15.03%

Related Articles

Wire

Aeva Technologies Launches $100 Million Follow-on Public Offering, Shares Fall After-Hours

Aeva Technologies (AEVA) said late Wednesday it launched a follow-on public offering of $100 million of its common stock.Underwriters will have a 30-day option to buy up to an additional $15 million of the company's shares, according to a statement.The company said it intends to use the net proceeds for general corporate purposes, including meeting commercial interest in AI infrastructure and Co-Packaged Optics, along with demand for its existing applications.Shares fell more than 9% in after-hours trading.

$AEVA
Wire

Stoneridge Names Scott Humphrey as CFO

Stoneridge (SRI) said late Wednesday it has appointed Scott Humphrey as chief financial officer and treasurer, starting June 8.From 2020 to 2023, Humphrey served as CFO and treasurer of Fox Factory (FOXF), a regulatory filing shows. From 2023 until joining the company, Humphrey was not employed as he focused on personal matters and professional development, Stoneridge said in the filing.Bob Hartman, who has served as interim CFO since April 1, will continue in his role as chief accounting officer, Stoneridge added.

$FOXF$SRI
Wire

W. R. Berkley Declares Special Dividend, Raises Share Repurchase Authorization

W. R. Berkley (WRB) said Wednesday its board has increased the share repurchase authorization back to its prior level of 25 million shares of common stock.Repurchases may be made in the open market or in privately negotiated transactions, the company said.The company declared a special cash dividend on its common stock of $0.50 per share and also increased its regular quarterly dividend to $0.10 from $0.09, both payable July 2 to stockholders of record on June 23.

$WRB