Disney Invests $1 Billion in OpenAI Licensing Characters

Written by Emily J. Thompson, Senior Investment Analyst

AVGO.O-1.6%

DIS.N+2.42%

Source: Newsfilter

Updated: 1 hour ago

0mins

Source: Newsfilter

Strategic Investment: Disney announced a $1 billion investment in OpenAI, allowing its video generator Sora to use Disney's copyrighted characters, which not only showcases Disney's forward-looking approach in the AI sector but also enhances its content creation capabilities, potentially boosting market competitiveness.
Financial Performance: Although Broadcom's fourth-quarter results exceeded expectations with net income nearly doubling, its shares fell 4.5% in after-hours trading, indicating market concerns over its major customer Google potentially shifting to in-house chip production, which could impact future profit margins.
Market Dynamics: The S&P 500 and Dow Jones Industrial Average hit new highs on Thursday, reflecting resilience in the U.S. economy, while the Nasdaq Composite underperformed due to Oracle's stock decline, indicating a rotation of investor interest from tech stocks to other sectors.
Legal Challenge: Reddit launched a legal challenge against Australia's ban on social media for minors, arguing that the law is invalid based on the implied freedom of political communication, which could influence operational models and policy-making for social media platforms.

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Analyst Views on AVGO

Wall Street analysts forecast AVGO stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for AVGO is 398.73 USD with a low forecast of 300.00 USD and a high forecast of 480.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

30 Analyst Rating

28 Buy

2 Hold

0 Sell

Strong Buy

Current: 412.970

Low

300.00

Averages

398.73

High

480.00

Current: 412.970

Low

300.00

Averages

398.73

High

480.00

Rosenblatt

Kevin Cassidy

Buy

maintain

$400 -> $440

2025-12-09

New

Reason

Rosenblatt

Kevin Cassidy

Price Target

$400 -> $440

2025-12-09

New

maintain

Buy

Reason

Rosenblatt analyst Kevin Cassidy raised the firm's price target on Broadcom to $440 from $400 and keeps a Buy rating on the shares as part of an earnings preview. The firm expects Broadcom to beat estimates due to accelerating shipments of tensor processing units and additional traction with XPU. Broadcom's networking business should also see revenue upside as the data center networks expand, the analyst tells investors in a research note.

Oppenheimer

Rick Schafer

Outperform

maintain

$400 -> $435

2025-12-05

Reason

Oppenheimer

Rick Schafer

Price Target

$400 -> $435

2025-12-05

maintain

Outperform

Reason

Oppenheimer analyst Rick Schafer raised the firm's price target on Broadcom to $435 from $400 and keeps an Outperform rating on the shares ahead of its Q4 earnings next week. The firm sees upside for results and outlook, led again by AI compute/networking franchises, the analyst tells investors in a research note. Oppenheimer adds that it expects next-gen Tomahawk6 volumes to ramp in the second half of next year, providing added growth and gross margin boost.

Susquehanna

Christopher Rolland

maintain

$400 -> $450

2025-12-04

Reason

Susquehanna

Christopher Rolland

Price Target

$400 -> $450

2025-12-04

maintain

Reason

Susquehanna analyst Christopher Rolland raised the firm's price target on Broadcom (AVGO) to $450 from $400 and keeps a Positive rating on the shares. The firm updated its model ahead of its quarterly results and believes the launch of new Google TPUv7 (GOOG) coupled with proliferating AI networking demand to drive growth in 3Q/4Q. And looking forward, broadening ASIC customer set to drive inflection in 2H26.

BofA

Neutral

maintain

$88 -> $105

2025-12-03

Reason

BofA

Price Target

$88 -> $105

2025-12-03

maintain

Neutral

Reason

BofA raised the firm's price target on Marvell (MRVL) to $105 from $88 and keeps a Neutral rating on the shares. The company had a "very confident tone" and sales visibility on the call, but the firm reiterates its Neutral rating based on three points: FY27 EPS is relatively unchanged given expected dilution from the planned Celestial AI acquisition; the 25%-plus year-over-year data center growth rate next year is strong, but below the 50%-100% growth rate for AI compute peers; and FY28 growth depends on ramp at new customer Microsoft (MSFT), who does not have a history of large internal ASIC programs and who already has choice of incumbent Nvidia (NVDA) and partner OpenAI-Broadcom (AVGO) design IP.

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About AVGO

Broadcom Inc. is a global technology firm that designs, develops, and supplies a range of semiconductors, enterprise software and security solutions. The Company operates through two segments: semiconductor solutions and infrastructure software. Its semiconductor solutions segment includes all of its product lines and intellectual property (IP) licensing. It provides a variety of radio frequency semiconductor devices, wireless connectivity solutions, custom touch controllers, and inductive charging solutions for mobile applications. Its infrastructure software segment includes its private and hybrid cloud, application development and delivery, software-defined edge, application networking and security, mainframe, distributed and cybersecurity solutions, and its FC SAN business. It provides a portfolio of software solutions that enable customers to plan, develop, automate, manage and secure applications across mainframe, distributed, mobile and cloud platforms.

About the author

Preview

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.