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Investing.com - Barclays raised its price target on Broadcom Limited (NASDAQ:AVGO) to $400.00 from $265.00 on Friday, while maintaining an Overweight rating on the stock. The semiconductor giant, currently valued at $1.44 trillion, has demonstrated remarkable performance with a 102.58% return over the past year and is trading near its 52-week high of $317.35.
The firm cited a new ASIC (application-specific integrated circuit) customer expected to contribute in the second half of fiscal year 2026, likely adding approximately $5 billion each in the third and fourth fiscal quarters.
Barclays noted that Broadcom’s existing three core ASIC customers are performing better than expected and will likely exceed the company’s 60% year-over-year AI revenue target even before factoring in the new customer.
The research firm mentioned that Broadcom confirmed one of two potential customers is taping out chips through the end of this year with production potential next year, and highlighted the possibility of a fifth customer joining soon.
Beyond ASICs, Barclays reported that Broadcom is currently experiencing shortages of electro-absorption modulated lasers (EMLs), which explains transceiver constraints, and is doubling capacity over the next nine months.
In other recent news, Broadcom Inc. reported strong financial results for the third quarter of 2025, exceeding analysts’ expectations. The company achieved an earnings per share (EPS) of $1.69, which was above the projected $1.66. Revenue for the quarter reached $16 billion, surpassing the anticipated $15.82 billion. These results have been positively received by the market, as indicated by the stock’s performance in after-hours trading. Investors have shown confidence in Broadcom’s performance and future outlook. Analyst reactions to these developments have not been specified, but the results suggest a favorable view of the company’s current trajectory. These earnings and revenue figures highlight Broadcom’s strong position in the market.
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