Analysts have shown bullish sentiments towards Broadcom, with HSBC's Frank Lee upgrading the stock from hold to buy and raising the price target from $240 to $400 per share, highlighting the company's prowess in application-specific integrated circuits (ASICs) for AI.

Broadcom has reported a remarkable 20% year-over-year revenue growth, achieving over $15 billion in the second quarter, which sets a new quarterly record.

Adjusted net income also saw a significant rise, increasing by 44% to approximately $7.8 billion, translating to $1.58 per share, and surpassing analyst expectations.

In the realm of AI, revenue surged by 46% to over $4.4 billion during the same quarter, with projections indicating it could reach $5.1 billion in the upcoming third quarter.

Looking ahead, Broadcom's guidance for the third quarter suggests revenue will be around $15.8 billion, slightly exceeding the average market forecast.

The company's strong fiscal second-quarter results, coupled with a new product launch and positive analyst reviews, contributed to a nearly 14% increase in Broadcom's stock price throughout June 2025.

A key component of Broadcom's strategy is the recent launch of the Tomahawk 6 switch, designed to address the heightened resource demands of AI applications, which is expected to see strong initial demand.