- Mizuho Analyst Vijay Rakesh repeated a purchase on Broadcom Inc AVGO and a price target of $725 reflecting technology leadership with Tomahawk 4/5, growing software, industry-leading margins and FCF.
- Mizuho hosted AVGO’s CEO Hock Tan, CFO Kirsten Spears and IR Ji Yoo.
- Rakesh saw strong demand with a continued leading market position. Broadcom’s overall customer lead times remained at approximately 50 weeks and manufacturing lead times could potentially improve.
- Broadcom’s gross margin improvement resulted from better uptake/adoption/mixing through more robust next-generation new product launches.
- Broadcom’s goal is to become the “golden screw” for customers’ match sets, delivered to the “real” end demand.
- Broadcom is looking to invest in VMWare’s core competency post-acquisition to build its software business.
- Price promotion: AVGO shares traded 2.36% higher to $524.13 on the last check Friday.
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