Broadcom: AI To Continue Driving The Stock Higher
Summary
- The company is well-positioned to benefit from the strong demand for custom AI accelerators and networking solutions.
- Successful VMware integration and cost-cutting have boosted margins, diversified revenue, and enhanced Broadcom's resilience to semiconductor cycles.
- Another key catalyst is that the company is expected to benefit from inference demand in addition to training.
- I have a buy rating due to its continued momentum in AI and the expected strong top-line and bottom-line growth.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of AVGO, AMD, NVDA, TSM, MRVL 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.
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