RBC Initiates Broadcom (AVGO) at Sector Perform, Flags Margin and Valuation Risks Despite AI Upside

Broadcom Inc. (NASDAQ:AVGO) is one of the AI Stocks Making Waves on Wall Street. On January 14, RBC Capital analyst Srini Pajjuri initiated coverage on the stock with a Sector Perform rating and a price target of $370. He flagged margin and valuation concerns for AVGO, but also sees upside potential in artificial intelligence. Analyst Srini Pajjuri pointed out three key debates surrounding the stock: gross margin impact from artificial intelligence growth, sustainability of Anthropic’s ramp-ups, and the m ...