Ge Long Hui·2025-11-19 12:00Core Viewpoint - The report from CMB International gives Broadcom (AVGO.US) a "Buy" rating with a target price of $425, driven by strong growth in AI semiconductor revenue projected to achieve an 87% CAGR from FY2025 to FY2027 [1] Group 1: AI Semiconductor Revenue - Broadcom's AI semiconductor revenue is expected to benefit from dual drivers: xPU ASIC acceleration chips and AI communication networks [1] - The anticipated 87% CAGR for AI semiconductor revenue highlights significant growth potential in the upcoming fiscal years [1] Group 2: VMware Integration - The integration of VMware is exceeding expectations, which enhances software synergy and profitability stability for Broadcom [1] - This integration is expected to contribute positively to the overall performance of the company [1] Group 3: Earnings Projections - For FY2027, Broadcom's Non-GAAP EPS is projected to reach $12.00, indicating high visibility for earnings growth [1] - The target price of $425 corresponds to a PE ratio of 45 and 35 times for FY2026 and FY2027, respectively [1]