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Investing.com - Piper Sandler raised its price target on Broadcom Limited (NASDAQ:AVGO) to $375.00 from $315.00 on Friday, while maintaining an Overweight rating on the semiconductor company. The $1.44 trillion market cap company, which InvestingPro analysis indicates is trading above its Fair Value, has seen its stock surge over 102% in the past year.
The research firm cited Broadcom’s strong artificial intelligence results and guidance showing robust year-over-year growth, reflected in the company’s impressive 28% revenue growth over the last twelve months. Piper Sandler noted that Broadcom secured XPU orders from a fourth customer worth approximately $10 billion, with delivery expected in the second half of fiscal year 2026.
The firm expressed confidence that XPUs have "a significant chance of becoming the dominant portion of the compute" within Broadcom’s hyperscaler customer base. While networking performance was strong, Piper Sandler indicated future growth would likely be driven primarily by XPUs.
Broadcom’s infrastructure software segment performed "relatively well," with management discussing potential addon services that could drive future growth. The firm highlighted that gross margins remained resilient despite significant acceleration in XPU business.
Piper Sandler significantly raised its financial projections for Broadcom’s fiscal 2026 and introduced estimates for fiscal 2027, describing both as potentially "material years for growth for AI." For detailed analysis of Broadcom’s AI growth trajectory and comprehensive financial metrics, access the full InvestingPro Research Report, part of our coverage of 1,400+ top US stocks.
In other recent news, Broadcom has reported significant developments that have caught the attention of investors and analysts alike. The company announced fiscal third-quarter earnings of $1.69 per share on revenue of $16 billion, surpassing analyst expectations of $1.67 per share on $15.8 billion in revenue. This strong performance was attributed to robust results in both the semiconductor and software segments. Furthermore, Broadcom’s AI semiconductor revenues saw a remarkable 63% year-over-year increase to $5.2 billion in the third quarter, with projections of further acceleration to 66% in the fourth quarter.
In light of these results, several firms have adjusted their stock price targets for Broadcom. KeyBanc, Bernstein, Rosenblatt, and JPMorgan have all raised their price targets to $400, citing strong AI performance and market share gains. Meanwhile, Baird increased its target to $300, highlighting a substantial order from OpenAI expected in the latter half of 2026. These recent developments underscore Broadcom’s leadership in various technology sectors, including AI, data center networking, and infrastructure silicon.
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