UBS Maintains Buy Rating on Broadcom but Lowers Price Target to $310

UBS has reaffirmed its "Buy" rating for Broadcom (AVGO) while adjusting its price target downward to $310 from a previous $330. The revision reflects limited near-term upside for earnings per share, primarily driven by a slowdown in the company's gaming business. Despite these headwinds, the bank remains optimistic about Broadcom's long-term fundamentals, supported by robust demand in the CPU and GPU markets. Broadcom recently bolstered its technological edge by launching a new Wi-Fi 8 solution designed for AI-ready enterprise networks. This strategic move highlights the company's focus on capturing the growing infrastructure needs of the artificial intelligence sector. Analysts believe that while the gaming segment poses a temporary drag, the core semiconductor business remains well-positioned for future growth.