Jefferies reiterated its Buy rating for Broadcom with a $550 price target. The firm cited growing confidence in the company's artificial intelligence chip business through 2028.
Broadcom maintains a steady TPU roadmap with Google and an expanding custom chip customer base. A new custom AI processor for OpenAI, codenamed Jalapeno, serves as a key growth driver.
Jefferies estimates the Jalapeno chip could offer 50% lower costs than competing hardware. The processor also targets 40% lower power consumption.
Broadcom's stock rose nearly 1% in pre-market trading on June 30, 2026. Jefferies suggested the recent stock pullback represents a buying opportunity for investors.