KeyBanc Reaffirms Buy on Broadcom (AVGO) Ahead of Earnings, Citing Strong AI Demand

Core Insights - Broadcom Inc. is recognized as a trending AI stock, with KeyBanc maintaining an Overweight rating and a price target of $420 ahead of its fiscal fourth-quarter 2025 earnings report [1][2] Financial Performance Expectations - KeyBanc expects Broadcom to report revenue of $17.5 billion and earnings per share of $1.87 for F4Q25, slightly above consensus estimates of $17.4 billion and $1.86 respectively [3] - The anticipated strong results are attributed to robust demand for artificial intelligence in networking and AI ASICs [2][3] Growth Drivers - Broadcom is projected to maintain a 100% market share in Google's TPU through 2026, alongside the ramp-up of Meta's AI ASIC, MTIA v2, which are key growth drivers for the company [3] - Investor focus will be on the $10 billion revenue from Broadcom's fourth ASIC customer, AI outlook, ASIC backlog updates, and potential additions to its XPU customer pipeline [4] Strategic Positioning - Broadcom is positioned uniquely in the AI revolution due to its custom chip offerings and networking assets, which enhances its competitive advantage in the market [4]