Broadcom Inc. (NASDAQ:AVGO) is one of the Trending AI Stocks on Wall Street’s Radar. On October 21, Mizuho reiterated the stock as “Outperform” and raised its price target to $435 per share from $430. The firm now believes Anthropic is Broadcom’s fourth customer. “Reiterate AVGO at Outperform, raise PT to $435 (prior: $430), 42.7x our C26E P/E as we note AVGO now potentially with 5 Hyperscale ASIC customers (out of a possible ~7), as it continues to see its TAM/share expand with leadership in the AI ASIC ...

Core Insights - Broadcom Inc. is positioned as a leading player in the AI sector, with a focus on custom silicon and networking assets, which are critical for the AI revolution [1][4] - Mizuho analyst Vijay Rakesh has reiterated an Outperform rating on Broadcom with a price target of $410, indicating confidence in the company's growth potential [1] - The company has secured a significant $10 billion deal with its fourth AI customer, believed to be OpenAI, which is expected to drive substantial revenue growth [1][2] Financial Analysis - The anticipated $10 billion revenue is associated with AI Racks, with costs being passed through without margin stacking, indicating a stable revenue model [2] - Mizuho estimates a limited earnings impact from potential gross margin dilution, projecting a decrease of 166 basis points in fiscal 2026, 224 basis points in fiscal 2027, and 286 basis points in fiscal 2028, resulting in a minimal EPS impact of only 3-4% [2] Market Position - Broadcom is recognized as the "King of AI Custom Silicon" due to its accelerating ASIC revenues and expanding customer engagement, particularly with OpenAI [3] - The ramp-up of OpenAI's Titan is expected to accelerate in fiscal years 2027 and 2028, benefiting from the expertise of the XPU team and outsourcing strategies [3]