Here's why Mizuho raised its price target on Broadcom

Core Viewpoint - Broadcom's stock experienced a decline due to lower-than-expected backlog and reduced margins on certain orders, despite significant growth in AI revenues and earnings [2][3][5]. Company Performance - Broadcom's AI revenues are projected to grow by 125% into calendar year 2026, with year-on-year earnings growth exceeding 45% [3][7]. - The company remains a major supplier for key players in the tech industry, including Google, Meta, Anthropic, and OpenAI [4]. Market Reaction - The stock saw its worst day since April, attributed to profit-taking after a strong year-to-date performance, with a rise of 75-80% [5][6]. - Analysts suggest that the current pullback presents a buying opportunity, as the long-term growth outlook remains strong [5][7]. Competitive Landscape - Investors are likely to hold both Broadcom and Nvidia, as both companies are considered leaders in their respective segments [8][10]. - Nvidia is projected to generate substantial AI revenues, but Broadcom is noted for its faster growth rate, which is reflected in its valuation [9].