Piper Sandler analyst Harsh V. Kumar reiterated an Overweight rating on Broadcom Inc (NASDAQ:AVGO) with a price target of $1,650.
Kumar hosted a meeting with AVGO’s management on Tuesday. He noted AVGO as a premier player in the generative AI computing space.
The analyst said the returns for hyperscalers are clear once the company can run its workloads on hardware with greater power efficiency, such as the XPUs that Broadcom provides.
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However, companies are still hesitant to adopt these programs at the enterprise level as they cannot discern a clear ROI.
Management sized a potential 1 million unit cluster as a $50 billion opportunity, split between $20 billion for computing, $20 billion for networking, and $10 billion on other critical system elements.
Despite this sum, management explained that a finite number of firms are willing to step up and make that commitment, Kumar flagged.
The company now has 3 SKUs for the product versus 700+ when it ...Full story available on Benzinga.com
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