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Investing.com - Cantor Fitzgerald raised its price target on Broadcom Limited (NASDAQ:AVGO) to $350.00 from $300.00 on Tuesday, while maintaining an Overweight rating on the semiconductor stock. The company, currently valued at $1.4 trillion, has demonstrated impressive growth with revenue increasing 33.85% over the last twelve months. According to InvestingPro analysis, the stock is trading above its Fair Value, reflecting strong market optimism.
The research firm cited expected upside from Broadcom’s Semiconductor Solutions segment, particularly highlighting strength in Custom Silicon products. Cantor Fitzgerald specifically noted continued demand for Google’s next-generation TPU v6 chip and the upcoming v7p expected in the second half of the year.
The firm also pointed to a "more meaningful ramp" likely coming from Meta’s MTIA program in the October quarter timeframe, signaling additional growth catalysts for Broadcom’s AI-related business.
Cantor Fitzgerald projected that Broadcom’s Custom Silicon revenues could potentially reach $25-30 billion in calendar year 2026 and exceed $40 billion in 2027, supporting a "stretch goal" of $13 in earnings per share by 2027.
The new $350 price target reflects Cantor Fitzgerald’s "rising confidence in 2027 earnings power" and is based on approximately 30 times multiple discounted back by 12%, compared to the previous target based on calendar year 2026 earnings estimates.
In other recent news, Nvidia reported revenue of $46.7 billion for the quarter, slightly below Goldman Sachs’ estimate of $47 billion but above the consensus of $46.5 billion. Data Center revenue reached $41.1 billion, and Gaming revenue exceeded expectations at $4.3 billion. Following these results, Goldman Sachs reiterated its Buy rating for Nvidia with a $200 price target. Meanwhile, Broadcom announced that VMware Private AI Services will become a standard component of VMware Cloud Foundation 9.0, making the platform AI-native. This development has seen significant interest, with nine of the top 10 Fortune 500 companies committing to the platform. Additionally, Broadcom plans to integrate Nvidia’s Blackwell GPUs into VMware Cloud Foundation, enhancing AI capabilities. Broadcom also unveiled new cybersecurity and compliance tools for VMware Cloud Foundation, aimed at industries requiring stringent compliance. Piper Sandler raised its price target for Broadcom to $315, maintaining an Overweight rating due to anticipated growth in AI and infrastructure software segments.
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