Lyon released a report stating that Broadcom's first quarter performance met expectations, and the second quarter revenue guidance exceeded expectations, which is encouraging.

The firm currently maintains an "outperform" rating for Broadcom, with a target price of $425. It specifically notes that Broadcom has not yet begun to expand production based on major contracts signed with Anthropic, an unnamed fifth largest client, and OpenAI, as well as order commitments for Google TPU. The firm expects Broadcom's revenue growth to accelerate significantly in the coming quarters, with second quarter revenue guidance suggesting a year-on-year increase of 47%, far exceeding the actual 29% growth in the first quarter. The firm anticipates that during the delivery period for new orders in the fourth quarter, revenue may increase by nearly 100% year-on-year, before declining in the next fiscal year. On an annual basis, Broadcom is expected to achieve a 67% year-on-year revenue growth rate in the current fiscal year.