10:40 AM EDT, 06/06/2025 (MT Newswires) -- Broadcom ( AVGO ) could be set up well in the short- and long-term through a combination of the secular growth of its artificial intelligence business, continued software integration and execution, and potential rebound of its non-AI semis, Deutsche Bank said in a Friday note.

The company's fiscal Q2 results and Q3 outlook were "largely in-line with expectations," Deutsche Bank said, noting that AI delivered upside during fiscal Q2, while software remained steady and non-AI semis saw a slower recovery.

"The lack of a cyclical recovery in non-AI is likely to remain a headwind into F4Q, but we expect investors to more eagerly focus on the growth trajectory in [Broadcom's ( AVGO )] AI business, Deutsche Bank said. The firm also noted increasing demand from the company's three primary XPU customers and Broadcom's ( AVGO ) continued "general dominance" in ethernet connectivity.

Deutsche Bank reiterated its buy rating on Broadom, with a higher price target of $270.

Price: 250.81, Change: -9.12, Percent Change: -3.51