Broadcom’s Real Constraint Isn’t Demand. It’s Supply.

Piper Sandler believes Broadcom Inc. (NASDAQ:AVGO) is the leader in ASIC chips, holding 75% share of the ASIC market for AI inference. On September 9, firm analyst David O'Connor initiated coverage on the stock with an Overweight rating and a $460 price target. O'Connor estimates demand running twice the available supply for Broadcom, which makes the ability to deliver chips central to his thesis. Even though the chipmaker boasts demand, component availability and deployment timing will determine its conversion into earnings.Broadcom's Real Constraint Isn't Demand. It's Supply.