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On September 30, KeyCorp analyst John Vihn raised Broadcom’s price target by 5% from $400 to $420, making it the most bullish target alongside analyst Arthur Lai. This implies a potential upside of approximately 22%, as other analysts now total three with targets above $400. In contrast, the MarketBeat consensus forecast stands at $357, suggesting only a 3.5% upside.
Broadcom generated $25 billion in free cash flow over the last 12 months, allowing the company to invest in growth areas like co-packaged optics (CPOs). The technology, which promises to use 65% less power than traditional copper interconnects, is seen as crucial for the future demand in AI data centers. Recent tests showed Broadcom’s CPOs withstood one million link hours without disruptions, indicating improved reliability for hyperscale applications.
Overall, analysts maintain a bullish outlook on Broadcom’s potential, driven by opportunities in AI semiconductors and emerging technologies like CPOs.
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