Goldman Sachs analyst James Schneider reiterated a Conviction Buy rating and $480.00 price target on Broadcom Limited (NASDAQ: AVGO)

.The analyst comments: "On April 14th, Broadcom announced a multi-year, multi-generation strategic partnership with Meta (here) to support Meta’s MTIA custom compute chips, with supply chain fulfillment plans extending to 2029. The partnership’s initial commitment exceeds 1GW and is the first phase of a sustained, multi-gigawatt rollout between the two companies. The announcement notes that Broadcom is delivering its networking solutions to address Meta’s scale-up, scale-out and scale-across requirements as a part of this partnership — and the deal goes beyond hardware supply to collaboration on system-level optimization and forward-looking R&D efforts. Given the scale of this expanded partnership, Broadcom’s CEO Hock Tan is transitioning off of Meta’s Board of Directors and into an advisor role for Meta, where he is expected to provide guidance on Meta’s custom silicon roadmap. We believe this announcement further reinforces the importance of Broadcom’s role in the ongoing AI infrastructure buildout through its industry-leading XPU platform and networking capabilities, and multi-year strategic partnerships with leading US hyperscalers provide visibility into the company’s long-term AI revenue growth. Our FY27/28 EPS estimates are ~14% above Street, and we reiterate our Buy rating on Broadcom (also on the Conviction List) with a 12-month price target of $480."

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Shares of Broadcom Limited closed at $380.78 yesterday.