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Investing.com - Evercore ISI raised its price target on Broadcom Limited (NASDAQ:AVGO) to $342 from $304 while maintaining an Outperform rating ahead of the company’s July quarter earnings report scheduled for Thursday after market close. The semiconductor giant, with its impressive $1.4 trillion market capitalization, has shown remarkable financial strength, maintaining a robust gross profit margin of 77% according to InvestingPro data.
The firm cited several positive factors supporting the stock, including a favorable TPU product cycle at Google, strong demand for high-speed datacenter connectivity and networking chips, and year-over-year revenue growth that bottomed in the April 2025 quarter. InvestingPro analysis reveals the company’s impressive 33.85% revenue growth in the last twelve months, with additional insights available in the comprehensive Pro Research Report covering 1,400+ top US stocks.
Evercore ISI also noted that between May and August this year, 2025 capital expenditure estimates increased by 15% for Google and 6% for Meta, potentially benefiting Broadcom’s business.
The firm acknowledged that positive fundamentals may be partially priced into the stock already, as Broadcom trades at a next-twelve-month P/E ratio of 38x, near an all-time high and well above its 10-year range of 10x-20x.
Broadcom shares have nearly doubled since their last trough in April 2025, rising 96% compared to the S&P 500’s 16% gain during the same period, with Evercore ISI basing its new price target on calendar 2027 EPS of $10.20 and a 37x forward P/E multiple discounted back one year at 10%.
In other recent news, Broadcom Inc. has been the focus of several developments. The company announced that VMware Private AI Services will become a standard component of VMware Cloud Foundation 9.0, making the platform AI-native. This move has seen nine of the top 10 Fortune 500 companies commit to the platform, with over 100 million cores licensed globally. Additionally, Broadcom plans to integrate NVIDIA’s Blackwell GPUs into VMware Cloud Foundation, aiming to enhance AI capabilities for enterprises and cloud service providers.
In a related update, Broadcom introduced new cybersecurity and compliance capabilities for VMware Cloud Foundation. The VCF Advanced Cyber Compliance service offers automated compliance management and enhanced platform security, targeting organizations in regulated industries. On the financial front, Cantor Fitzgerald raised its price target for Broadcom to $350, citing growth in the Semiconductor Solutions segment, particularly in Custom Silicon products. Meanwhile, Nvidia reported revenue of $46.7 billion, surpassing the Street consensus, with notable performance in its Data Center and Gaming segments.
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