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Investing.com - Mizuho (NYSE:MFG) has raised its price target on Broadcom Limited (NASDAQ:AVGO), a prominent player in the semiconductor industry with a market capitalization of $1.27 trillion, to $315.00 from $310.00 while maintaining an Outperform rating on the stock. According to InvestingPro data, the company maintains strong financial health with impressive gross profit margins of 77%.
The research firm kept its July quarter revenue and earnings per share estimates unchanged at $15.8 billion and $1.64, respectively, compared to consensus estimates of $15.8 billion and $1.66. This follows Broadcom’s robust performance, with revenue growing 33.85% over the last twelve months. InvestingPro analysis reveals over 15 additional key metrics and insights available for subscribers.
Mizuho increased its fiscal 2025 estimates from $62.4 billion in revenue and $6.59 in earnings per share to $62.8 billion and $6.64, aligning with current consensus projections.
The firm also raised its fiscal 2026 estimates from $75.3 billion in revenue and $8.24 in earnings per share to $78.0 billion and $8.43, exceeding consensus expectations of $76.2 billion and $8.24.
Mizuho cited "strong TPU ramps continuing into 2026E with TPUv7p" as a key driver, while also noting that "MTIA v2/3 provides additional tailwinds" and potential XPU ramps with OpenAI and Apple (NASDAQ:AAPL) could begin in the second half of 2026, with volume production increasing in 2027.
In other recent news, Broadcom reported quarterly earnings of $15.0 billion, meeting analysts’ expectations, with semiconductor sales at $8.4 billion and software revenue at $6.6 billion. The company’s artificial intelligence segment is projected to continue its growth, with anticipated AI sales for next year around $30 billion, exceeding current consensus estimates by $4-5 billion. Broadcom also announced the general availability of VMware Cloud Foundation 9.0, designed for modern private cloud environments, which includes enhancements to its advanced services portfolio. Analysts from Bernstein SocGen raised Broadcom’s stock price target to $295, maintaining an Outperform rating, while TD Cowen increased the target to $290, highlighting a 60% growth projection in AI for fiscal year 2026. Rosenblatt also lifted the price target to $340, following a 46% quarter-over-quarter increase in AI revenue and a 60% year-over-year growth projection in this segment. Citi analysts raised their price target to $285, despite challenges with lower margins due to a higher semiconductor mix. Broadcom’s management expressed confidence in sustaining the current growth rate into 2026, supported by strong AI adoption and custom ASIC capabilities.
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