Jim Cramer's least-favorite tech stock gets a new analyst endorsement
Analysts at Piper called Broadcom the "ASIC compute king" in a new note to clients.
TL;DR
- Piper Sandler initiated coverage of Broadcom with a buy rating and a $460 price target, calling it the "ASIC compute king."
- Broadcom holds a 75% share in ASIC chips for AI inference and has co-design relationships with major hyperscalers like Alphabet, Meta Platforms, and OpenAI.
- Despite strong multiyear sales forecasts for its AI custom chip business, Broadcom faced investor concerns over supply constraints and a disappointing fiscal 2027 guide.
- Jim Cramer expressed skepticism about Broadcom, citing competitive concerns and the politicization of AI buildouts, but refrained from selling the rest of his stake.
- Piper analysts believe concerns about market share loss to rivals like Marvell are overblown and highlight Broadcom's strong position in the networking business.
- Jim Cramer's Charitable Trust holds a long position in Broadcom (AVGO).