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Broadcom Gains Fresh Price-Target Hikes as AI Chips Ship and Outlook Tops Street

New AI networking chips ship at scale, bolstering a revenue outlook that tops forecasts.

Overview

  • Broadcom said its Tomahawk 6 switch is in full production and shipping to customers, handling twice the data of the prior generation.
  • On March 11 the company announced availability of the Taurus BCM83640, a 3nm 400G/lane optical PAM‑4 DSP for 1.6T transceivers that doubles throughput per lane and enables next‑generation 3.2T modules.
  • Management guided to roughly $22 billion in fiscal second‑quarter revenue and forecast adjusted EBITDA at about 68% of sales.
  • Citi, JPMorgan, Morgan Stanley, Argus, Rosenblatt, and Baird lifted targets or reaffirmed positive ratings, with Rosenblatt citing CEO Hock Tan’s view of a path to more than $100 billion in AI chip revenue by fiscal 2027.
  • Analysts continue to flag risks that include about $62 billion in debt, heavy exposure to a small set of hyperscale customers, and sensitivity to potential slowdowns in AI spending.