Rosenblatt’s recent move to raise Broadcom’s price target to $2,400 from $1,650 represents a significant endorsement of the semiconductor giant’s future prospects. This revision comes just ahead of Broadcom’s planned 10-for-1 stock split, a move designed to increase the affordability and liquidity of its shares, potentially attracting a broader investor base.
Looking forward to fiscal year 2026 (FY26), Rosenblatt’s projections highlight expectations of robust growth for Broadcom. They foresee high-teens sales growth driven primarily by the continued momentum in AI infrastructure networking and ASIC technologies. Broadcom’s strategic focus on these areas aligns with broader industry trends towards increased automation, data processing, and connectivity, all crucial components of modern computing and telecommunications.
The anticipated Non-GAAP EPS of $75 underscores Rosenblatt’s confidence in Broadcom’s ability to leverage its technological prowess and market position effectively. This optimism is bolstered by expectations of improved synergies in enterprise software, which are poised to further enhance profitability and operational efficiency across Broadcom’s business segments.
For the current fiscal year, FY24, Rosenblatt maintains a bullish outlook, anticipating Broadcom to exceed its recently raised sales target of $51 billion. This optimistic forecast is supported by the strong demand for Broadcom’s AI-focused semiconductors, which constitute a significant portion of its product mix. The integration of VMware’s technologies within Broadcom’s ecosystem is also expected to contribute positively, driving synergies and expanding market reach.
Rosenblatt’s analysis underscores Broadcom’s exceptional execution in advancing its technological capabilities, particularly highlighted by the impressive growth in its switching divisions. Innovations such as the Tomahawk 5 and Jericho 3 platforms have fueled a doubling in growth within these segments, alongside expansions in PCIe switches and NICs. These advancements not only strengthen Broadcom’s competitive position but also position it favorably to capitalize on evolving market demands for high-performance networking solutions and data processing capabilities.
In the competitive landscape of AI semiconductors, Rosenblatt contrasts Broadcom’s strategy favorably against competitors like Nvidia. While both companies are pivotal players in the AI market, Broadcom’s commitment to open standards and broad industry support provide a distinct advantage. This strategic alignment enhances Broadcom’s market resilience and underscores its capacity to deliver sustainable growth and shareholder value over the long term.
Overall, Rosenblatt’s bullish outlook reflects a comprehensive assessment of Broadcom’s strategic initiatives, technological innovations, and market opportunities. As Broadcom continues to navigate dynamic industry trends and expand its global footprint, the firm’s elevated price target and optimistic projections signal strong confidence in Broadcom’s ability to sustain leadership in critical semiconductor markets.