HSBC Lifts Broadcom (AVGO) Price Target, Keeps Hold Rating

Broadcom Inc. (NASDAQ:AVGO) is one of the 10 Best American Semiconductor Stocks to Buy Now. On June 6, HSBC analysts raised the price target for Broadcom Inc. (NASDAQ:AVGO) from $225 to $240 and kept a “Hold” rating. This adjustment came after the $15.8 billion. This represents a 5% growth quarter-over-quarter and is in line with consensus estimates.

For Q3 fiscal year 2025, Broadcom Inc. (NASDAQ:AVGO) provided AI revenue guidance of $5.1 billion, representing a 16% increase quarter-over-quarter and above HSBC’s estimate of $4.6 billion and the consensus estimate of $4.7 billion. This growth is supported by strong quarter-over-quarter sales of ASIC chips.

Broadcom Inc.’s (NASDAQ:AVGO) non-AI semiconductor revenues and infrastructure software revenues are expected to stay stable quarter-over-quarter. The company’s gross margin guidance for Q3 fiscal year 2025 stands at 78.1%, which is 135 basis points lower. This decrease is attributed to a higher ASIC mix. Despite that, this figure is still higher than HSBC’s estimate of 77.1% and the consensus estimate of 77.6%.

Broadcom Inc. (NASDAQ:AVGO) is an American multinational technology company that designs, develops, and supplies a wide range of semiconductor, enterprise software, and security solutions.

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