Feb. 5 at 9:25 PM
Jefferies 5-star analyst (#62 out of 12,040 Wall Street Analysts) reiterates Top Pick & Buy Rating on
$AVO & keeps TP of
$500
One current overhang on the stock has been the sustainability of AI spending.
Alphabet said that it expects 2026 cap-ex to come in the range of
$175B-
$185B. The top end of that f/cast is more than double the company’s spend in FY25
“Clearly the Google capex guide offers a significant vote of confidence for AI spend moving higher, but you also have news of capital raising progress from the other players such as OpenAI, xAI, & Oracle (plus Meta & Amazon)
Broadcom has an edge over rival MediaTek in supplying Google's next 2 major chip generations
"we believe most, if not all, of the demand will be for the higher performance AVGO chip, similar to what happened with v6e vs v7x"
“Our bottom-up model has 6M units total for Google in C27 with 85-90% going to AVGO and we see room for that overall number to move up further"