** Broadcom AVGO.O forecast quarterly revenue above Wall Street estimates on Thursday and predicted booming demand for its custom artificial intelligence chips in the next few years
** Shares up 14.37% at $206.62 in premarket trading
CUSTOM AI CHIP BENEFICIARY
** J.P. Morgan ("overweight", PT: $250) expects AI revenue to grow over 40% Y/Y in FY25 led by strong cloud/hyperscaler capex spending trends with focus on AI infrastructure build-out and ramp of Google’s next generation chips in H2 2025
** Piper Sandler ("overweight", PT: $250) says company continues to execute in both semi-solutions business as well as integration of VMware into its software portfolio
** "We see the strength in AI continuing at a rapid pace for AVGO" - Piper Sandler
** Evercore ISI ("outperform", PT: $250) sees AVGO continue to benefit as one of the few companies that have the ability to deliver a complete custom-AI chip solution
** Citigroup ("buy", PT: $220) says "AI still driving the bus", especially with the addition of two new AI customers which could potentially be Apple and OpenAI
(Reporting by Kanchana Chakravarty in Bengaluru)
((Kanchana.Chakravarty@thomsonreuters.com))
