Applications for Broadcom’s products in its end markets include data center networking, home connectivity, broadband access, telecommunications equipment, smartphones and base stations, servers and storage, factory automation, power generation and alternative energy systems and displays.
Top analysts and many on Wall Street are quite positive on the company’s massive $10 billion share repurchase authorization through December of 2023, which represents about 4.2% of the company’s market cap.
Investors receive a 2.16% dividend. The BofA Securities target price is $1,050, while Broadcom stock has a consensus target of $817.28, lower than Friday’s $851.82 closing share price.
Marvell Technology
This chip maker is probably well under the AI radar but could be another big winner. Marvell Technology Inc. (NASDAQ: MRVL) provides data infrastructure semiconductor solutions, spanning the data center core to network edge.
The company develops and scales complex SoC architectures, integrating analog, mixed-signal and digital signal processing functionality. It offers a portfolio of Ethernet solutions, including controllers, network adapters, physical transceivers and switches; single or multiple core processors; custom application specific integrated circuits; and SoC solutions.
Marvell also provides electro-optical products, including pulse amplitude modulations, coherent digital signal processors, laser drivers, trans-impedance amplifiers, silicon photonics and data center interconnect solutions; fiber channel products comprising host bus adapters and controllers; single or multiple core processors; storage controllers for hard disk drives and solid-state-drives; and host system interfaces, including serial attached SCSI, serial advanced technology attachment, peripheral component interconnect express, non-volatile memory express (NVMe) and NVMe over fabrics.
The company is modeling a stunning $400 million in AI sales this year and $800 million in 2024. Its Computing and AI applications have now grown to become the single largest revenue driver and opportunity for Marvell’s cloud-optimized silicon platform.
B. Riley Securities has set a $77 target price, and the consensus target is $70.65. Marvell Technology stock closed at $53.50 on Friday, which was down almost 7% for the day despite better than expected quarterly results.
Snowflake
This contender also resides in Warren Buffett’s Berkshire Hathaway portfolio, which holds over 6 million shares. Snowflake Inc. (NYSE: SNOW) provides cloud-based data platforms in the United States and internationally. Its platform offers Data Cloud, an ecosystem that enables customers to consolidate data into a single source of truth to drive meaningful business insights, build data-driven applications and share data.
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