Broadcom Named in Apple's $100B U.S. Investment Plan

Core Viewpoint - Broadcom has experienced significant price target increases from analysts, reflecting strong market sentiment and potential growth opportunities, particularly in AI semiconductors and partnerships with major companies like Apple [2][3][4]. Group 1: Analyst Upgrades and Price Targets - Broadcom's shares have surged approximately 74% over the past 52 weeks, leading to 23 analyst upgrades in the last 90 days [2]. - Goldman Sachs analyst Jame Schneider has set a bullish price target of $340 for Broadcom, suggesting a potential upside of 17% from the August 20 closing price of around $291 [3]. - The consensus price target from MarketBeat stands at $296, indicating less than 2% upside compared to the current price [3]. Group 2: Growth Potential in AI and Partnerships - Broadcom is expected to attract hyperscale customers for custom AI semiconductors by 2026, which is crucial for maintaining its 60% growth rate in AI-chip sales [4]. - Continued strength in VMware and new product releases for AI data centers are anticipated to drive further growth for Broadcom [5][6]. Group 3: Relationship with Apple - Apple has announced a $100 billion investment in the U.S., naming Broadcom as a partner for developing and manufacturing cellular semiconductor components [7][8]. - The partnership focuses on radio frequency (RF) components essential for 5G communications, reinforcing Broadcom's secure relationship with Apple despite Apple's efforts to diversify suppliers for other technologies [9]. Group 4: Market Performance and Earnings Outlook - Broadcom's stock has declined by around 7% since reaching an all-time high of nearly $313 on August 12, primarily due to broader tech sector weakness [10]. - The forward P/E ratio for Broadcom has decreased from 43x to 40x, easing some pressure ahead of the upcoming earnings release on September 4 [11].