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Investing.com - Goldman Sachs has reiterated its Buy rating and $360.00 price target on Broadcom Limited (NASDAQ:AVGO) following what it described as a "solid quarter" with guidance exceeding Street expectations. According to InvestingPro data, Broadcom maintains impressive gross profit margins of 77.19% and has achieved revenue growth of 28.01% over the last twelve months.
The investment bank highlighted Broadcom’s announcement of converting another new custom silicon customer focused on inference, which is expected to drive "material" upside to management’s previous projection of approximately 60% growth in AI Semiconductor revenue in 2026.
Goldman Sachs noted that Broadcom’s AI Networking prospects remain compelling heading into 2026, with significant scale-up and scale-out opportunities driven by its Tomahawk 6 and Jericho 4 products.
Broadcom disclosed a total backlog exceeding $110 billion, suggesting substantial business visibility over the next two years, according to the research note.
The company also announced that CEO Hock Tan intends to remain in his position through at least 2030, providing leadership continuity as Broadcom continues its development in AI custom compute and merchant networking silicon. The stock currently trades near its 52-week high, reflecting strong investor confidence in the company’s strategic direction.
In other recent news, Broadcom reported fiscal third-quarter results that exceeded analyst expectations, leading to a rise in European semiconductor stocks. The company’s strong performance was highlighted by its announcement of a new ASIC customer, expected to add $10 billion in ASIC revenue for fiscal year 2026. This development brings the total projected ASIC revenue to $30 billion for that period. HSBC reiterated its Buy rating on Broadcom, maintaining a price target of $400. Additionally, Morgan Stanley raised its price target for Broadcom to $382, citing growth opportunities in artificial intelligence technologies. BofA Securities also increased its price target to $400, highlighting the expansion of Broadcom’s custom AI chip business. Wolfe Research maintained a Peerperform rating on Broadcom, noting the addition of a fourth XPU customer expected to contribute significant revenue in 2026. These developments reflect a positive outlook among analysts for Broadcom’s future growth.
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