Bernstein Reaffirms Outperform Rating on Broadcom (AVGO), Keeps $400 PT

Core Insights - Broadcom Inc. is identified as a stock to buy by Ray Dalio's Bridgewater Associates, with Bernstein reaffirming an "Outperform" rating and maintaining a $400 price target, reflecting confidence in the company's growth trajectory [1][2] Group 1: Company Performance - Broadcom has achieved nearly 28% revenue growth over the past year, alongside industry-leading gross profit margins of 77.19% [2] - The company aims for a revenue target of $90 billion by 2030, which executives believe is "easily achievable" with just four current customers, and potentially $120 billion with existing relationships [2] Group 2: Future Growth Prospects - Broadcom's CEO Hock Tan anticipates $10 billion in revenue related to OpenAI by Q3 2026, with additional orders from OpenAI considered "highly likely" [2] - Bernstein expects Broadcom's AI-related growth to accelerate from 2025 through 2026, driven by innovative software products, effective cash management, strong margins, and free cash flow [3] Group 3: Industry Context - The demand for compute resources is exponentially increasing among frontier large language model developers and hyperscalers, which supports Broadcom's growth narrative [2]