Broadcom recently announced a significant $10 billion partnership with OpenAI, reinforcing its position in the competitive AI chip market and highlighting record third-quarter earnings. This collaboration not only enhances Broadcom’s growth narrative but also intensifies its rivalry with Nvidia, marking a pivotal shift in market dynamics. While the partnership promises to drive revenue acceleration, investors must consider the ongoing risk of customer concentration, as Broadcom heavily depends on a limited number of hyperscale buyers.
The company’s optimistic fourth-quarter guidance for fiscal 2025 forecasts approximately 24% year-on-year revenue growth, reaching an estimated $17.4 billion, driven by AI orders and ongoing diversification efforts. Broadcom aims for $119.6 billion in revenue by 2028, alongside a potential fair value of $360.20 per share. However, skepticism remains regarding reliance on major clients to sustain long-term growth. Explore various fair value estimates and engage with our community’s diverse perspectives.
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