Evercore Keeps Bullish Stance on Broadcom (AVGO) Following OpenAI Deal

Core Insights - Broadcom Inc. (NASDAQ:AVGO) is highlighted as one of the 13 best Fortune 500 stocks to invest in, driven by significant hedge fund interest [1] Financial Performance and Projections - Evercore ISI raised its price target for Broadcom from $342 to $403, maintaining an "Outperform" rating, reflecting confidence in the company's future earnings potential [2] - The price revision is based on Broadcom's agreement with OpenAI to deploy 10GW of custom AI accelerators by the end of 2029, which could add $2 to $6 to its 2029 EPS estimate [2][3] - Evercore's revised target is based on a 38x multiple of its 2029 EPS estimate of $14, discounted back three years [4] Strategic Partnerships and Market Position - The partnership with OpenAI reinforces Broadcom's position as a leading supplier of custom AI hardware, with its XPUs and Ethernet-based solutions supporting OpenAI's inferencing applications [3] - Broadcom has an unnamed fourth customer that has placed a $10 billion order, with deliveries expected to start in the second half of fiscal 2026 [3] Product Offerings - Broadcom designs, develops, and supplies a range of semiconductor devices and infrastructure software solutions, including Ethernet, optical, and Wi-Fi components, set-top box SoCs, PON/DSL gateways, and mobile device connectivity solutions [4]