Bernstein: Market's concerns about Broadcom Inc. (AVGO.US) AI competition are exaggerated. Reiterate "outperform" rating.

Bernstein analyst Stacy Rasgon reiterated a "outperform" rating on Broadcom Inc.(AVGO.US), with a target price of $475. The analyst dismissed concerns about competition threats faced by Broadcom Inc., pointing out that the company has a leading position in the field of Artificial Intelligence Specialized Integrated Circuits (ASICs), with unparalleled innovation and execution. Bernstein recently held a meeting with the management of Broadcom Inc., where concerns about the increasingly fierce competition in the field of artificial intelligence were deemed exaggerated. Investors are particularly focused on the intensifying competition and the impact of customer-owned tools (COT) on Broadcom Inc.'s dominance in the field of artificial intelligence. The analyst stated, "Yesterday we spent close to an hour discussing with Broadcom Inc.'s chip president, Charlie (it was more like guiding than discussing), where he detailed the technical, scale and supply chain advantages of Broadcom Inc. in the XPU roadmap and business. We are more convinced than ever that these concerns have been greatly exaggerated, and Broadcom Inc.'s dominant position in the field of artificial intelligence ASICs is unlikely to be challenged in the short term." The firm pointed out that Broadcom Inc. recognizes the innovative pace of NVIDIA Corporation (NVDA.US) in the field of artificial intelligence, which actually benefits Broadcom Inc. because it is the only company that can help XPU customers keep up with NVIDIA Corporation's roadmap development pace. With its numerous technological innovations, Broadcom Inc. stands out among its competitors and customers, taking the lead. The analyst added, "From 3D chip stacking and 400G serdes technology innovations, to supply chain scale, to investments in own substrate manufacturing, and new technologies that may achieve manufacturing without intermediate layers, Broadcom Inc.'s continued innovation at all levels is unmatched by any competitor or customer."