Broadcom (AVGO) shares are on the rise ahead of the company’s second-quarter earnings report, which is scheduled to be released after the market closes today. Analyst Christopher Danely from Citi has reiterated his Buy rating and $1,560 price target for Broadcom. The chip sector is closely watched by investors, with focus on Broadcom’s AI revenue target of $11 billion for the full year. The company’s acquisition of VM Ware is seen as a positive move, although it may be offset by weakness in its legacy offerings. The Biden administration’s potential restrictions on China and chips are also a factor to consider in assessing the success of Broadcom and the sector as a whole. The overall health of the chip sector, demand, sales, and growth milestones will be important indicators to watch in the coming quarters. Wall Street is optimistic and encouraged by Broadcom’s upcoming earnings report, with expectations of revenue exceeding consensus estimates and a potential increase in the full-year AI revenue target to at least $11 billion.
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