Korea, India, Vietnam stand out as Asia's top growth plays
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Yahoo
2 hours ago
- Yahoo
This Analyst Just Raised His Broadcom Stock Price Target by 70%. Should You Buy AVGO Now?
The broader global semiconductor market is expected to expand by 11.2% in 2025, reaching a total value of $700.9 billion. These explosive growth figures underscore the massive opportunity for companies positioned at the intersection of artificial intelligence and semiconductor innovation. Against this backdrop of unprecedented industry expansion, Broadcom (AVGO) has emerged as a standout performer, with its AI semiconductor revenue surging 46% year-over-year to over $4.4 billion in the second quarter of 2025. The company's stock has rallied an impressive 79% in just three months, significantly outpacing the S&P 500 Index ($SPX). This remarkable performance has caught the attention of Wall Street analysts, with HSBC recently upgrading the stock and raising its price target by a dramatic 70%. Chevron Stock's 4.6% Dividend Yield and 1.67% One Month Short Put Yield Make CVX a Buy Tariff Dealine, Fed Minutes and Other Key Thing to Watch this Week SoFi Stock Is Betting on Crypto Again. How Should You Play SOFI Stock Here? Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. The upgrade was driven by HSBC's growing confidence in Broadcom's Application-Specific Integrated Circuit (ASIC) business, with the firm revising its ASIC revenue estimates upward. But with such a meteoric rise already behind it, is Broadcom's best-in-class AI positioning worth the premium valuation, or has the rally run too far ahead of fundamentals? Let's find out. Broadcom (AVGO) is a leading semiconductor and infrastructure software company. The company is a dominant force in the Application-Specific Integrated Circuit (ASIC) market, focusing on high-performance computing, networking, and storage applications. Broadcom's stock performance has been nothing short of extraordinary, with shares rallying about 79% in just three months. Year-to-date, AVGO has gained approximately 19%. From a valuation perspective, Broadcom's trailing price-earnings ratio stands at 54x, representing a significant premium to the sector median of 23.3x. Broadcom's second quarter 2025 financial results exceeded analyst expectations across key metrics. The company reported record quarterly revenue of $15 billion, representing a 20% year-over-year increase and slightly surpassing analyst estimates of $14.95 billion. Adjusted earnings per share came in at $1.58, beating analyst estimates of $1.57 by a penny. Broadcom's AI semiconductor business stole the show, with revenue reaching $4.4 billion in Q2, a remarkable 46% year-over-year increase. This AI revenue now represents a substantial portion of the company's semiconductor segment, which generated $8.4 billion in total quarterly revenue, up 17% year-over-year. Infrastructure software revenue rose 25% year-over-year to $6.6 billion, driven by the successful VMware integration and strong adoption of subscription-based models. The company generated record free cash flow of $6.4 billion, representing 43% of total revenue, demonstrating the cash-generative nature of its business model. The company's most significant recent product launch exemplifies this strategic evolution: the Tomahawk 6 networking chip, which began shipping in June 2025. The Tomahawk 6 delivers the world's first 102.4 Terabits per second of switching capacity in a single chip, effectively doubling the bandwidth of any Ethernet switch currently available on the market. The Tomahawk 6 is designed to meet the demands of AI clusters with more than 1 million XPUs, positioning Broadcom at the center of the industry's most ambitious AI deployments. Simultaneously, Broadcom has cultivated an impressive portfolio of strategic partnerships with the world's most influential technology companies. The company serves as the 'pre-eminent ASICs co-partner' for major hyperscalers, with active collaborations including Meta (META), Apple (AAPL) , and OpenAI. These partnerships involve developing custom silicon solutions that these companies cannot easily replicate internally, creating substantial switching costs and long-term revenue visibility. According to analyst Mike Harrison from Redburn Atlantic, Broadcom maintains 'a strong pipeline of future customers and active involvement in multiple GenAI silicon programs.' The financial scale of these initiatives is substantial. HSBC analyst Frank Lee projects that Broadcom's ASIC revenue will reach $28.4 billion in fiscal 2026 and $42.8 billion in fiscal 2027. For the third quarter of its fiscal 2025, Broadcom anticipates revenues of approximately $15.8 billion. This guidance represents continued sequential growth and reflects management's confidence in sustained demand across both semiconductor and software segments. The company expects AI semiconductor revenues specifically to reach $5.1 billion in Q3, representing acceleration from the $4.4 billion achieved in Q2 2025. Analysts are very optimistic about Broadcom's future, with the 35 surveyed giving it a consensus 'Strong Buy' rating. The average price target is $293.83, which implies about a 6.5% upside from its current price. HSBC's dramatic price target hike — raising its target by 70% to $400 — has set the tone for heightened expectations. In summary, Broadcom stands out as a premier play on the AI infrastructure boom, backed by a fortress balance sheet, dominant market position, and a wave of analyst enthusiasm. Personally, I believe Broadcom's strategic positioning and execution make it one of the most compelling AI infrastructure investments for the next year. While the valuation is rich, the company's growth trajectory and analyst confidence suggest that the upside potential remains attractive — especially if AI adoption continues to accelerate. On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Yahoo
3 hours ago
- Yahoo
Huawei's AI Lab Fends Off Accusations It Copied Rival Models
(Bloomberg) -- Huawei Technologies Co.'s secretive AI research lab has pushed back against accusations it relied on rivals' models to develop its own Pangu platform, taking the unusual step of rebutting claims about its artificial intelligence efforts. Trump's Gilded Design Style May Be Gaudy. But Don't Call it 'Rococo.' Foreign Buyers Swoop on Cape Town Homes, Pricing Out Locals Are Tourists Ruining Europe? How Locals Are Pushing Back Massachusetts to Follow NYC in Making Landlords Pay Broker Fees NYC Commutes Resume After Midtown Bus Terminal Crash Chaos The Pangu Pro MoE is the world's first model of its kind to be trained on Ascend chips — Huawei's answer to Nvidia Corp.'s AI accelerators — the lab said in a WeChat post over the weekend. While the company employed open-source code — as is 'common practice' — Huawei said it respected intellectual property and stuck closely to licensing terms. This followed accusations posted on the coding platform Github that Pangu's source code contained uncredited material from key rivals. Huawei's response is rare for a company regarded as a standard-bearer for China's efforts to wean itself off foreign technology, in spheres from smartphones to semiconductors. In AI services, however, rivals such as DeepSeek and Alibaba Group Holding Ltd. have captured investors' and industry executives' attention. 'We strictly adhere to the requirements of open-source licenses, and clearly mark copyright statements in the relevant source files,' Noah's Ark, Huawei's research lab, said in the post. 'We welcome and look forward to in-depth and professional discussions on technical details with everyone in the open-source community.' A Huawei representative declined to comment beyond the statement issued by Noah's Ark. Founded in 2012 to spearhead research into advanced technologies at Huawei, Noah's Ark now mainly focuses on cutting-edge AI and areas such as data mining. Its offices span Shenzhen to Hong Kong and London. The accusations center around the Pangu Pro MoE (Mixture of Exerts) model. The company published its source code last week, which in turn spurred the creation of a GitHub group called 'HonestAGI' that debated its origins. The post was deleted days later. But on Sunday, another lengthy post appeared on the same platform. Entitled 'Pangu's Sorrow,' the unidentified author revived the allegations and also went into detail about how the team came under immense pressure to deliver, yet fell behind rivals. --With assistance from Newley Purnell, Luz Ding, Jessica Sui and Vlad Savov. For Brazil's Criminals, Coffee Beans Are the Target Sperm Freezing Is a New Hot Market for Startups SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate China's Homegrown Jewelry Superstar ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
8 hours ago
- CNBC
HSBC's Neumann: 'Too much TACO just leads to indigestion', Trump may follow through on some issues
Fred Neumann of HSBC discusses the latest U.S.-Vietnam trade agreements, and the tariffs on transshipments. He amplifies concerns around the definition of 'transshipments', and the TACO trade.
