Broadcom Inc (NASDAQ:AVGO) stock gets higher price targets from analysts after beating estimates for the first quarter and providing strong second-quarter guidance. Here's what analysts are saying about the company's future.
JPMorgan analyst Harlan Sur reiterated an Overweight rating on Broadcom and raised the price target from $475 to $500.
Goldman Sachs analyst James Schneider maintained a Buy rating and raised the price target from $450 to $480.
Rosenblatt analyst Kevin Cassidy maintained a Buy rating and raised the price target from $450 to $500.
Benchmark analyst Cody Acree reiterated a Buy rating with a price target of $485.
JPMorgan on Broadcom Stock
Broadcom reported "solid" first-quarter results and guidance, Sur said in a new investor note.
The analyst said the results and guidance were driven by "continued upside" in the AI segment.
"AI networking accounted for one-third of total AI revenues in Q1 and is expected to increase to 40% of total AI revenue in Q2, implying that revenues should grow 50%+ Q/Q," Sur said. "We believe this performance puts Broadcom on track to deliver over $65B in AI revenues in FY26."
The analyst said there is improved visibility into 2027 estimates, with Broadcom having the chance to hit over $100 billion in AI chip revenues in fiscal 2027.
Sur names key partnerships with OpenAI, Anthropic and Meta in the investor note, along with predicting SoftBank and Bytedance could be potential unnamed customers.
The analyst says Broadcom is the "top pick in the semiconductor sector."
Goldman Sachs on Broadcom Stock
Schneider highlights the company's guidance and management commentary as the key items that could drive the share price higher.
"We expect the stock to trade meaningfully higher following guidance that came in well above the Street, as well as management commentary that we believe should address several key investor debates on the stock," Schneider said.
The analyst said the company's commentary suggests AI revenue of more than $100 billion in fiscal year 2027. Schneider also said Broadcom naming other customers outside of Google, such as Meta, Anthropic and OpenAIhelps with investor expectations.
"Management noted that it has secured supplies of all key components needed to support its revenue forecast through FY28."
Rosenblatt on Broadcom Stock
Broadcom's guidance and AI revenue being more than $100 billion in fiscal 2027 were also highlights for Cassidy.
"For us, the mic-drop moment was CEO Hock Tan saying their FY27 visibility has dramatically improved," Cassidy said.
The analyst said the company's AI accelerator roadmap is on track and additional customers are coming.
"We recommend owning AVGO shares for its clear leadership in AI ASICs and networking."
Benchmark on Broadcom Stock
Benchmark is "building AI momentum" Acree said in a new investor note.
The analyst said investors were impressed by Broadcom's guidance after a disappointing market reaction to NVIDIA Corp.’s (NASDAQ:NVDA) quarterly results and guidance.
"Management leaned heavily into its much-improved multi-year visibility — framing demand as increasingly driven by a small but expanding set of now six core platform customers," Acree said.
The analyst highlighted the company's customer breadth, composition of AI revenue and supply-chain certainty as highlights from the quarterly results and guidance.
"We continue to believe Broadcom represents an attractive investable opportunity."
Broadcom Stock Price Action
Broadcom stock is up 4.237% to $331.40 on Thursday at publication versus a 52-week trading range of $138.10 to $414.61. Broadcom shares are up 74% over the last 52 weeks.
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