Broadcom Inc. Named Top Pick by Jefferies for 2025
Jefferies has named Broadcom Inc. as its top pick for 2025, citing the company’s strong position in the rapidly growing AI chip market. Broadcom’s advanced chips are expected to rival those of Nvidia in compute density as new technologies like 3.5D packaging and silicon photonics gain traction. The brokerage firm raised its price target on the stock to $300 from $225, banking on strong earnings growth.
Broadcom’s AI business has gained momentum, particularly in training-focused chips, which command higher prices as designs become more complex. The company’s chips are expected to grow larger and incorporate more advanced technologies, boosting average selling prices. Jefferies estimated that Broadcom’s AI chip sales could generate over $60 billion in revenue by 2027, driving earnings per share to $12 or more.
The firm also sees significant upside potential if Broadcom captures even a fraction of the high-end market. Broadcom’s role in building powerful AI clusters, with major customers aiming to deploy 1 million computing units, is also expected to support artificial general intelligence, a key area of innovation.
In addition to its AI business, Jefferies noted a strong outlook for Broadcom’s networking and optical products.