Broadcom continues to be a “best-in-class” buying opportunity as artificial intelligence drives earnings power, according to Bank of America. Analyst Vivek Arya reiterated a buy rating on Broadcom following a keynote address from CEO Hock Tan at Bank of America’s Global Technology Conference. “Management presented a compelling and unique vision of focus on premium compute/networking products, laserfocus on operational efficiency, consistent GM expansion, and best-in-class FCF generation/returns (FCF margins of 50%+ the highest in semiconductor industry),” Arya wrote in a Wednesday note. AVGO 1D mountain Broadcom shares 1-day Broadcom shares surged 41% this year. However, the analyst’s $950 price objective represents 20% further upside from Tuesday’s close of $790. That growth will be supercharged by the rapidly expanding A.I. market, which is still in its early stages. Arya highlighted the potential not only in Broadcom’s semiconductors business, but also in its AI ethernet networking platform. “While much attention is placed on accelerator penetration in AI servers, an underappreciated opportunity is the networking assets that need to support higher bandwidth requirements generated by AI workloads, which could be more influential to AVGO’s AI growth long-term,” read the note. “All-in, AI can help AVGO can drive roughly $47/$50+ in EPS by FY24/25E, and we see 5%-6% upside to long-term numbers of AI revenue targets are achieved (see latest June 1 earnings note),” the analyst said. —CNBC’s Michael Bloom contributed to this report.