Broadcom stock price target raised to $430 from $410 at Mizuho on OpenAI deal

Investing.com - Mizuho raised its price target on Broadcom Limited (NASDAQ:AVGO) to $430.00 from $410.00 on Monday, while maintaining an Outperform rating following OpenAI’s announcement of a custom ASIC partnership with the chipmaker. The semiconductor giant, currently valued at $1.68 trillion, has shown impressive momentum with 26 analysts recently revising their earnings estimates upward, according to InvestingPro data.

The partnership represents OpenAI’s third gigawatt-scale deal in the past four weeks, with the AI company planning to deploy 10 gigawatts of its custom ASIC, code-named Titan. Mizuho estimates this could potentially be worth $150-200 billion for Broadcom over multiple years.

Initial production ramps for the custom chips are expected to begin in the second half of 2026, according to Mizuho’s research note. The firm has conservatively raised its Broadcom AI revenue estimates to $40.4 billion for fiscal 2026, $64.5 billion for fiscal 2027, and $78 billion for fiscal 2028.

Mizuho also highlighted additional tailwinds from Broadcom’s networking business with SUE/Tomahawk products, conservatively estimating $15-20 billion in incremental revenue per gigawatt from combined AI ASIC and networking sales.

OpenAI has announced approximately 26 gigawatts worth of deals in the past four weeks with Broadcom, NVIDIA, and AMD. Mizuho continues to list Broadcom as its "TOP PICK" in the semiconductor sector.

In other recent news, Broadcom Inc. has announced a multi-year partnership with OpenAI to supply custom silicon and networking chips. This collaboration, which involves the development of 10 gigawatts of AI accelerators, is expected to begin deployment in the second half of 2026 and continue through the end of 2029. CFRA has praised this partnership, noting Broadcom’s "extraordinary" visibility and pipeline. Wolfe Research has reiterated its Peerperform rating for Broadcom, highlighting the company’s provision of Ethernet-based solutions for scale-up and scale-out capabilities in these rack systems. Melius Research has also reiterated a Buy rating, emphasizing the significant revenue potential from the OpenAI deal. Aletheia Capital has initiated coverage with a Buy rating and a $400 price target, projecting that Broadcom’s AI revenue could double year-over-year in fiscal years 2026 and 2027. These developments underscore Broadcom’s strategic focus on AI technology and its potential impact on future revenue streams.

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