Broadcom's AI Chip Dominance and Jefferies' Top Pick Endorsement Drive Stock Surge

Broadcom (AVGO) shares have surged 106.3% over the past year, fueled by its dominance in the custom AI chip market. The company's recent collaboration with OpenAI and substantial custom AI chip orders from tech giants like Google and Meta have contributed to a $100 billion revenue backlog. Jefferies has crowned Broadcom its new "Top Pick" in the semiconductor sector, citing an "inflection point" due to accelerating demand for custom AI chips. The firm has raised its price target to $480 from $415 and boosted financial projections.