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Investing.com - KeyBanc has raised its price target on Broadcom Limited (NASDAQ:AVGO) to $400.00 from $330.00 while maintaining an Overweight rating following the company’s strong fiscal third-quarter results. The semiconductor giant, currently valued at $1.44 trillion, has demonstrated impressive momentum, trading near its 52-week high with a remarkable 102% return over the past year. InvestingPro analysis indicates the stock appears overvalued at current levels.
The semiconductor company reported that its AI semiconductor revenues grew 63% year-over-year to $5.2 billion in the third quarter, accelerating from 46% growth in the previous quarter, with further acceleration to 66% year-over-year expected in the fiscal fourth quarter. This growth contributes to Broadcom’s impressive overall revenue growth of 28% and industry-leading gross profit margin of 77.19%. For deeper insights into Broadcom’s financial health and growth prospects, InvestingPro subscribers have access to over 15 additional exclusive tips and comprehensive analysis.
KeyBanc’s price target increase was primarily driven by Broadcom securing orders from a fourth AI customer, believed to be OpenAI, in addition to its existing customers Google, META, and ByteDance.
This new customer relationship is expected to contribute an incremental $10 billion in revenue during Broadcom’s fiscal year 2026, prompting KeyBanc to raise its forward estimates significantly.
Broadcom CEO Hock Tan has indicated he plans to continue leading the company through at least 2030, providing leadership stability as the company expands its AI semiconductor business.
In other recent news, Broadcom reported fiscal third-quarter 2025 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. Following these results, several analysts have adjusted their price targets for the company. Bernstein raised its price target to $400, highlighting strong performance in artificial intelligence semiconductors. Similarly, Rosenblatt increased its price target to $400, citing continued market share gains. JPMorgan also elevated its target to $400, recognizing Broadcom as a leader in multiple technology segments. Deutsche Bank raised its price target to $350, noting stronger-than-expected growth prospects in artificial intelligence. Meanwhile, Baird increased its price target to $300, driven by a significant order from OpenAI expected in the second half of 2026. These developments reflect the market’s positive outlook on Broadcom’s performance and future potential.
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