Broadcom shares hit in reaction to Apple’s wireless chip plans

The Lakers currently have an equal weighted or neutral rating on Broadcom (AVGO) shares, with a price target of $580 per share.

Bank of America Securities analyst Vivek Arya has affirmed his Buy rating and price target of $680 per share on Broadcom (AVGO). “Losing business with high-profile customers like Apple is not a positive one,” Arya said, but factors like when Apple (AAPL) will make the switch make Broadcom (AVGO) less likely. He said he remained positive. Proprietary to his Wi-Fi and Bluetooth chipsets.

Arya said that even with that loss, Broadcom (AVGO) would be left with “a substantial 12% to 15% of Apple’s.” [business] Broadcom (AVGO) also has a history of selling off parts of its business to avoid being overly dependent on Apple (AAPL).

Arya also said Apple (AAPL) news was a “moderate negative” for Broadcom (AVGO) investors, while the company’s “profitability and growth depend heavily on its own data centers.” I was. [and] “Enterprise networking assets” and strong market exposure for cloud-based capital spending.

Broadcom (AVGO)’s share price took a hit in late December as European Union officials launched a so-called “deep” probe into the company’s proposed $61 billion acquisition of VMware.

Leave a Reply

Your email address will not be published. Required fields are marked *