Evercore Keeps Bullish Stance on Broadcom (AVGO) Following OpenAI Deal

With significant hedge fund interest, Broadcom Inc. (NASDAQ:AVGO) secures a spot on our list of the 13 best Fortune 500 stocks to invest in now.

On October 15, 2025, Evercore ISI increased its price target on Broadcom Inc. (NASDAQ:AVGO) from $342 to $403, maintaining an “Outperform” rating.

The price revision reflects Broadcom Inc. (NASDAQ:AVGO)’s agreement with OpenAI under which it will deploy 10GW of custom AI accelerators by the end of 2029. The investment firm believes this deal could add $2 to $6 to its 2029 EPS estimate.

Furthermore, the move reinforces the company’s positioning as a leading supplier of custom AI hardware. Broadcom Inc. (NASDAQ:AVGO)’s XPUs and Ethernet-based solutions support OpenAI’s inferencing applications. Moreover, the firm highlighted that OpenAI is not the same as the previously announced unnamed fourth customer. That customer had already placed a $10 billion order, with deliveries scheduled to start in the second half of fiscal 2026.

Evercore ISI’s revised target is based on a 38x multiple of its 2029 EPS estimate of $14, discounted back three years. Furthermore, the firm plans to update its model following Broadcom Inc. (NASDAQ:AVGO)’s upcoming earnings call.

Broadcom Inc. (NASDAQ:AVGO) designs, develops, and supplies semiconductor devices and infrastructure software solutions worldwide. Its offerings include Ethernet, optical, and Wi-Fi components; set-top box SoCs; PON/DSL gateways; and mobile device connectivity solutions.

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