Jefferies Financial published a research report stating that Broadcom's guidance for growth in the first fiscal quarter of next year meets expectations. Last quarter, AI revenue grew 18% quarter-on-quarter to $3.7 billion, exceeding the firm's forecast of $3.5 billion, mainly driven by networking AI. Management revealed that clients plan to deploy 1 million xPU clusters. Jefferies stated that looking ahead to the growth of AI ASIC chips, the company’s AI revenue may reach between $60 billion and $90 billion by the 2027 fiscal year. The firm noted that although more trends in AI may not be observed until the second half of next year, they believe the market will take an interest in Broadcom again, and the bullish forecast scenario for AI ASIC chips may unfold earlier, giving a "Buy" rating with the Target Price raised from $205 to $225.