AVGO Stock Today: January 23 TD Cowen Flags ‘Insatiable’ AI Demand
Broadcom stock is in focus after TD Cowen flagged “insatiable” AI chip demand across XPUs and AI networking and reiterated a Buy with a US$450 AVGO price target. Management signaled bookings are running above the recently disclosed US$73 billion backlog, supporting revenue visibility. For Canadians, the AI build-out and stronger pipeline ease margin and backlog worries. Shares of AVGO may see near-term upside risk as investors digest the TD Cowen rating and improved order flow context.
What TD Cowen Heard From Broadcom
TD Cowen said Broadcom told analysts that AI demand remains “insatiable,” spanning accelerators and AI networking. Crucially, bookings are running ahead of the US$73 billion backlog disclosed recently, which tightens visibility into 2026 deliveries. The update reduces fears that orders might slow as cloud budgets reset. Read the recap from CNBC for context and quotes: Broadcom CEO told TD Cowen analysts there’s insatiable demand.
A stronger AI pipeline can support mix and margins as higher-value networking ramps. TD Cowen reiterated its Buy TD Cowen rating and kept the AVGO price target at US$450, citing upside risk if orders convert faster. The firm’s readout also tempers backlog quality concerns. For Broadcom stock, sustained hyperscaler spending remains the key swing factor into the next two quarters.
How The Setup Looks For Investors In Canada
Most Canadian investors gain exposure by trading the U.S.-listed shares through domestic brokerages with USD accounts. Volume is deep, and spreads are typically tight during U.S. market hours. If you manage in CAD, consider how currency conversion costs affect total return. Broadcom stock’s catalyst path is AI infrastructure orders, so watch hyperscaler capex commentary and vendor checks in quarterly reports.
Returns for Canadians will reflect both share performance and USD/CAD moves. Currency swings can add volatility around earnings and macro events. Dividends and withholding rules vary by account type, so confirm details with your provider before investing. Keeping some USD cash on hand can reduce repeated conversion costs. Always align position size with your risk tolerance and time horizon.
Price Action and Technical Levels To Watch
Short-term signals are mixed. RSI sits at 42.70, near neutral. MACD is negative at -6.07 versus a -5.23 signal, hinting at fading momentum. ADX at 16.58 indicates a weak trend. Price is below the 50-day average of 357.32, which is a tactical hurdle for bulls. A decisive close back above the 50-day could attract momentum buyers to Broadcom stock.
Volatility is elevated, with ATR at 13.47. Bollinger Bands show lower support near 304.85, middle at 356.85, and upper at 408.86. Keltner lower sits around 325.93. Recent intraday swings between 314.11 and 321.99 highlight choppy tape. Traders may watch 325 to 330 as a near-term gauge, with 356 to 358 as the next resistance cluster if buyers regain control.
Fundamentals and Street Views
Broadcom stock carries a premium, with a P/E near 66.75 and price-to-sales around 24.2. Profitability is robust: gross margin 67.77% and operating margin 39.89%. ROE is 31.47% with debt-to-equity at 0.80. Free cash flow yield is about 1.75%. The setup implies execution must stay strong, especially in AI networking, to support current multiples.
Street views skew positive: 39 Buy ratings and 1 Hold. TD Cowen’s reiterated Buy and US$450 target follow its meeting with Broadcom’s CEO, reinforcing AI strength source. Upcoming earnings are scheduled for March 4, 2026. We also note Meyka’s Stock Grade: A (Score 81.9), suggesting BUY based on combined fundamentals, forecasts, and peer comparisons.
Final Thoughts
TD Cowen’s readout supports the AI demand story, with bookings tracking ahead of the US$73 billion backlog and a reiterated Buy with a US$450 target. For Canadian investors, the key is whether hyperscaler capex stays firm and Broadcom converts pipeline to revenue at healthy margins. Tactically, a close above the 50-day average near 357 could improve momentum, while 325 to 330 looks like a helpful gauge on dips. Consider scaling entries, keeping USD exposure in mind, and watching earnings on March 4 for updated AI commentary and guidance. As always, manage risk and review your account-specific currency and tax settings. This article is for information only, not investment advice.
FAQs
What did TD Cowen say about Broadcom’s AI demand?
TD Cowen said management described AI demand as “insatiable,” covering accelerators and AI networking, and noted bookings are running above the recently disclosed US$73 billion backlog. The firm reiterated its Buy rating and US$450 target, highlighting improved visibility and potential upside if orders convert faster into revenue and margins stay strong.
Is the US$450 AVGO price target from TD Cowen in CAD or USD?
The US$450 AVGO price target is quoted in U.S. dollars. Canadian investors should consider USD/CAD moves when assessing return potential. Currency shifts can amplify gains or losses versus a CAD benchmark, especially around earnings and macro events that affect both the stock and the exchange rate.
How do the technicals look for Broadcom stock right now?
Signals are mixed. RSI is 42.70, MACD is negative, and ADX at 16.58 suggests no strong trend. Price sits below the 50-day average around 357. Key zones include 325 to 330 on the downside and 356 to 358 on the upside. ATR at 13.47 points to active daily swings.
What near-term catalysts should Canadian investors watch?
Focus on March 4 earnings for AI order updates, margin mix, and networking growth. Watch hyperscaler capex commentary from cloud leaders, as it often sets demand tone. Technically, a reclaim of the 50-day average could improve momentum. Currency shifts can also affect CAD returns, so track USD/CAD around major data and Fed decisions.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
