Broadcom: Potentially DeepSeek's Biggest Beneficiary - Reiterate Buy

Summary

• Broadcom's growth is driven by hyperscaler demand for custom AI accelerator chips, with a projected ~30% growth through FY2027, making it compelling for high-growth investors.
• Its prospects remain strong, especially in ASICs, networking, and Ethernet connectivity end markets, thanks to the ongoing cloud supercycle.
• DeepSeek may also trigger the growing demand for more efficient AI training and inference performance, as more deep-pocketed hyperscalers diversify from NVDA.
• The recent sell-off has also established the $200s ranges as AVGO's trading floor, with those levels triggering double-digits upside potential.
• We shall further discuss in detail.

We Are

Bright Prospects Ahead As More Likely Adopt AVGO's Custom ASIC Offerings

We previously covered Broadcom Inc. (NASDAQ:AVGO) (NEOE:AVGO:CA) in December 2024, discussing its robust growth prospects driven by the growing hyperscaler demand for Custom

Analyst’s Disclosure:I/we have a beneficial long position in the shares of AVGO, NVDA, TSM, GOOG, META, AMZN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.