This chip company has a 'multi-year $100-$125bn AI opportunity': BofA

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This chip company has a 'multi-year $100-$125bn AI opportunity': BofA

During a meeting with Broadcom’s CEO Hock Tan, CFO Kirsten Spears, and IR head Ji Yoo, BofA reaffirmed its Buy rating on the stock and raised its price target to $215, citing a “multi-year $100-$125bn AI opportunity.”

The total addressable market for Broadcom is projected to reach between $100-$125 billion, largely driven by internal workloads at top hyperscale customers. BofA noted that Broadcom is well-positioned in AI, particularly in networking, which is projected to grow from 15-20% of AI spending to 20-25% in the coming years.

In addition to AI, the bank highlighted Broadcom's software division, particularly VMWare, which is transitioning to a subscription model.

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