Broadcom Initiated at Neutral by DA Davidson on AI ASIC Concerns

DA Davidson initiated coverage on Broadcom (AVGO) with a Neutral rating. The firm set a price target of $335.00.

Analysts acknowledge the growing importance of AI application-specific integrated circuits (ASICs). The firm questions the long-term sustainability of Broadcom's market position.

Major customers may internalize chip development over the next few years. This shift could pressure supplier economics.

DA Davidson concludes Broadcom's AI ASIC business does not warrant a premium valuation. The firm maintains this stance relative to market leaders like NVIDIA.