Broadcom (AVGO) Price Target Raised on Massive OpenAI Custom Chip Partnership

Core Insights - Broadcom Inc. is gaining attention on Wall Street as a key player in the AI sector, with Mizuho raising its price target to $430.00 from $410.00 while maintaining an Outperform rating [1] - OpenAI has partnered with Broadcom to develop 10 gigawatts of custom AI accelerators, with production expected to start in the second half of 2026 [2][4] - This collaboration is projected to be worth between $150-200 billion for Broadcom over several years, marking OpenAI's third gigawatt-scale deal recently [3] Financial Projections - Mizuho has revised its revenue estimates for Broadcom's AI segment, forecasting $40.4 billion for fiscal 2026, $64.5 billion for fiscal 2027, and $78 billion for fiscal 2028 [4] - The anticipated growth is supported by additional benefits from Broadcom's networking business, particularly with SUE/Tomahawk products [4] Market Position - Broadcom is strategically positioned in the AI revolution due to its custom chip offerings and networking assets, making it a significant player in the market [5] - Despite the potential of Broadcom as an investment, there are other AI stocks that may offer greater upside potential with less downside risk [5]