** Broadcom Inc's AVGO.O CEO on Thursday assuaged investor worries about AI chip demand with a strong second-quarter forecast and hinted about new potential customers who could boost revenue in a highly competitive market
** Shares of chipmaker soar ~10.7% to $198.61 in premarket trading
DOMINATING THE WIRELESS CHIP MARKET
** J.P. Morgan ("overweight," PT: $250) believes AVGO's AI revenues to grow significantly in FY25, driven by strong spending on AI infrastructure and increased use of ethernet networking
** Morgan Stanley ("overweight," PT: $260) says co's recovery in legacy semiconductors is slow, but its software performance is strong
** Brokerage also sees networking bandwidth as crucial, with increasing adoption of Ethernet AI, a technology that enhances AI infrastructure with high-speed networking
** Bernstein ("outperform," PT: $250) says AVGO's AI capabilities will grow in the next few quarters
** Melius Research ("buy," PT: $258) believes new customers won't contribute to co's revenue for 1-2 years, but expects OpenAI to be a major contributor by 2026
(Reporting by Akriti Shah in Bengaluru)
((akriti.shah@thomsonreuters.com))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.