Piper Sandler Reinstates Broadcom With $460 Price Target

According to CNBC, Piper Sandler renewed coverage of Broadcom with a buy rating and set a $460 price target, implying more than 25% upside from current levels. The firm called Broadcom the "ASIC compute king," said it leads the ASIC chip market for AI inference with a 75% share, and pointed to its co-design relationships with hyperscalers and AI labs. Piper cited Alphabet's Google TPUs as the current volume shipper and noted an expanded deal with Anthropic for next-generation TPUs, while also highlighting Broadcom's ramp-up of Meta Platforms' MTIAs and OpenAI's Jalapeno chips. Broadcom earlier this month reported better-than-expected quarterly EPS and revenue and issued a strong multiyear sales forecast for its AI custom chip business, though the stock fell nearly 3% on Sept. 3 after the earnings release. Piper said concerns about ASIC share loss to Marvell, MediaTek and Arm Holdings are overdone and also pointed to Broadcom's networking business, which accounts for 30% of AI chip revenue.