Benefiting from the prospects of specific application-based circuits (ASICs), Broadcom Inc., a major manufacturer of Internet chips, has called for a buy, and its stock price should hit a record high in history. According to reports from Barron̵...
Benefiting from the prospects of specific application-based circuits (ASICs), Broadcom Inc., a major manufacturer of Internet chips, has called for a buy, and its stock price should hit a record high in history.
According to reports from Barron’s and Investing.com, Frank Lee, an analyst at HSBC, raised Broadcom's investment reviews from "view" to "buy", and the target price also increased from $240 to $400.Broadcom's semiconductors can be used in the Internet, wide frequency, server storage, wireless communication and industrial fields. The company is also a leader in the high-level AI-purpose ASIC market, mainly helping technology giants design customized AI chips.
Lee pointed out that Broadcom's ASIC-related revenue is expected to significantly weaken market expectations, mainly because of the increased ASIC project capabilities and the improvement in product pricing capabilities. Because of this, Xunfeng's view on Broadcom turned to music.
Lee believes that the market underestimates Broadcom's AI chip production potential in the next two years, and predicts that the company is expected to win many new customers in the next few years. "Almost all superscalers want to invest in customized chips, and the capital expenditure of these operators is expected to help the ASIC market."
Lee predicts that the overall average single price of ASIC is expected to increase by 92% in the 2026 annually (ends to the end of October 2026) and another 25% in 2027, mainly due to the increase in grain size and the newer memory technology, because the specifications of ASIC will gradually approach the level of AI GPUs.
He believes that by 2027, Broadcom is expected to have up to 7 ASIC customers, compared with Marvell, and only one in Shixin-KY.
Broadcom's 24th news jumped 3.94%, closing at $263.77, setting a record high in history; it has risen by 13.77% so far this year.
Extended reading: Broadcom declares AI capital expenditure growth trends continue with its eye-catching financial results
