Broadcom, Credo Technology in focus as Mizuho ups price targets on AI strength

Broadcom (NASDAQ:AVGO) and Credo Technology (NASDAQ:CRDO) were in focus on Monday as Mizuho Securities upped its price target on the pair, citing continued strength in artificial intelligence.

Broadcom shares rose 0.5% in premarket trading, while Credo tacked on 1.8%.

Broadcom’s custom silicon business could see an opportunity of $16B or more if it wins OpenAI’s chip business, starting in the second-half of 2025 or 2026, Mizuho analyst Vijay Rakesh said, noting that the custom silicon market is heading towards becoming worth $56B in its entirety.

Additionally, the acceleration of China creating its own large language models and custom AI chips with export restrictions, as well as potential wins from Amazon (AMZN) Web Services and Google (GOOG) (GOOGL) in their respective custom silicon creations could bode well for Broadcom, Rakesh added.

Broadcom, along with Nvidia (NVDA), are still seen as the leaders in the GPU and custom silicon space, with Arm (ARM) and Micron (MU) well positioned in the silicon intellectual property and high-bandwidth memory markets, respectively, Rakesh added.

He upped his price target on the Hock Tan-led Broadcom to $220 from $190. Credo’s price target was upped to $41 from $35 amid continued tailwinds in custom silicon and networking into next year and beyond.