KeyBanc Raises Broadcom (AVGO) PT, Keeps Overweight Rating

Core Viewpoint - Broadcom Inc. (NASDAQ:AVGO) is recognized as one of the 10 most profitable stocks over the last five years, with an increased price target from $400 to $420 by KeyBanc Capital Markets, maintaining an Overweight rating [1]. Group 1: Supply and Demand Dynamics - KeyBanc has significantly revised its forecast for CowWos CoWoS (Chip on Wafer on Substrate) supply, expecting it to reach 190,000 units in 2026, which is an increase of over 160% compared to the previous year [2]. - This growth in supply is attributed to Broadcom maintaining a 100% share of Google's Tensor Processing Unit (TPU) franchise through 2026, as MediaTek's TPU7e has faced delays [2]. Group 2: Market Position and Future Prospects - TPU shipments are projected to more than double in 2026, as Google plans to expand the chip's availability for a broader range of workloads, which is anticipated to enhance Broadcom's position in the AI chip industry [3]. - Broadcom is identified as a multinational technology company that designs, develops, and supplies a variety of semiconductor, enterprise software, and security solutions [3].