Broadcom Gets Big Upgrades: How High Analysts See Shares Going

Broadcom (NASDAQ: AVGO) hit an absolute home run in fiscal Q3 2025. The combination of its earnings report and management commentary was one of the best possible outcomes for the chip giant. In response, shares soared more than 9% on September 5. Following this, Wall Street analysts resoundingly boosted their price targets on the stock. 

So, just how high do these forecasts suggest that Broadcom stock could go, and what range of possibilities do analysts see? We’ll break all this down below.

Broadcom Q3 Recap and Update: OpenAI May Be Broadcom’s New Buyer

As a quick recap, Broadcom slightly beat estimates on sales in fiscal Q3, which translated to a 3-cent beat on adjusted earnings per share (EPS). The firm’s revenue guidance for Q4 also came in nearly $400 million better than anticipated. However, what really got markets excited was the commentary coming from Chief Executive Officer (CEO) Hock Tan.

Tan said that Broadcom had officially inked a deal with one of its four prospective customers for its artificial intelligence (AI) XPUs. That brings the company’s AI XPU customer count to four, with three prospects remaining.

The new deal is large, coming in at $10 billion. For reference, that’s equal to nearly 17% of Broadcom’s total revenue over the last 12 months. Adding to the excitement is a report that OpenAI, the inventor and operator of ChatGPT, is Broadcom’s new customer.

If true, OpenAI would join Alphabet (NASDAQ: GOOGL), Meta Platforms (NASDAQ: META), and TikTok owner ByteDance as Broadcom’s generally accepted AI XPU buyers. For a full breakdown of Broadcom’s fiscal Q3 2025 earnings and commentary, see this MarketBeat article.

Analysts Boost Targets by 22%, Tan’s AI Compensation Deal Fuels Another Rally

With Broadcom’s big customer acquisition, it is not surprising that MarketBeat tracked over 15 analysts who boosted their target on or after September 5. Notably, all but one of these analysts placed a Buy or Overweight rating on the stock.

Diving into the numbers, the average price target among these analysts who updated their forecasts increased by over 22%. That’s more than double the 9% gain shares actually saw, suggesting that these analysts saw the results as even more impressive than the market did.

As of the September 10 close, the MarketBeat consensus price target on Broadcom is around $352. Notably, this figure implies nearly 5% downside in shares. However, it is essential to note that this comes as Broadcom gained an additional 10% on Sept. 10.

Shares moved up as regulatory findings revealed that CEO Hock Tan could receive massive levels of compensation if Broadcom hits specific AI revenue goals over the coming years.

This signals Tan's confidence that the company will hit these goals. Tan likely would not have agreed if he had not been confident in this arrangement. 

Oracle’s (NYSE: ORCL) spectacular AI outlook also probably played a part in the rally. We’ll have more on these stories going forward. However, it wouldn’t be shocking to see analysts raise their price targets further in response. This could bring the consensus closer to Broadcom’s September 10 price.

Updates Still Imply Upside with $400 Forecasts

Even without potential target boosts due to these pieces of news, price targets updated between Sept. 5 and September 8 are considerably more bullish than the consensus target.

Among analysts who updated their forecasts during this period, the average price target is just under $377. That figure implies approximately 2% upside in shares.

Although not striking by any means, 2% upside is considerably more encouraging than projections of 5% downside.

Overall, the updated analyst forecasts fall within a relatively narrow range. Wells Fargo & Company has the lowest target and the only Equal Weight rating within the group. 

Analyst Aaron Rankers's $345 forecast implies an approximately 7% downside in Broadcom. Meanwhile, the highest updated price target is $400. Underscoring the bullish skew among these updates is the fact that more than five forecasters placed a $400 target on Broadcom.

This figure implies an 8% upside in shares versus Broadcom's September 10 closing price.

Despite this relatively limited upside, denying Broadcom's recent business success is impossible. The firm has added a new AI XPU customer for the first time in around a year, showing its ability to turn potential into profit.

If Broadcom converts its other three prospects, all else equal, shares are likely to go much higher than these price targets indicate.

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The article "Broadcom Gets Big Upgrades: How High Analysts See Shares Going" first appeared on MarketBeat.