Nvidia among investors in xAI’s $20 bln capital raise- Bloomberg
Investing.com - Mizuho has raised its price target on Broadcom Limited (NASDAQ:AVGO) to $355.00 from $320.00 while maintaining an Outperform rating on the stock. The company, currently trading near its 52-week high, has demonstrated remarkable performance with a 102.58% return over the past year. According to InvestingPro analysis, the stock is currently trading above its Fair Value.
The price target increase follows Broadcom’s in-line July quarter results and October quarter guidance of approximately $17.4 billion, which exceeded consensus estimates of $17.0 billion.
Mizuho highlighted Broadcom’s fiscal 2026 AI revenue growth forecast, now estimated at 76% year-over-year, up from a previous estimate of approximately 60%, driven by a fourth XPU AI customer expected to contribute more than $10 billion in the second half of fiscal 2026.
The firm noted Broadcom’s substantial $110 billion 12-month backlog, with semiconductors representing 40-50% of that total, potentially implying an XPU backlog exceeding $35 billion.
July quarter AI revenue reached approximately $5.2 billion, with October quarter guidance of $6.2 billion representing a 19% sequential increase as XPU ramps accelerate, while infrastructure software is guided to decline approximately 1% quarter-over-quarter amid the transition to VMCloud Foundation v9.0.
In other recent news, Broadcom reported fiscal third-quarter results that surpassed analyst expectations, contributing to a rise in European semiconductor stocks. The company announced onboarding a new ASIC customer, which is anticipated to generate an additional $10 billion in revenue for fiscal year 2026, raising the total projected ASIC revenue to $30 billion. Goldman Sachs reiterated its Buy rating on Broadcom, highlighting the company’s solid quarter and guidance that exceeded Street expectations. The investment bank noted Broadcom’s new custom silicon customer focused on inference, expected to drive significant growth in AI Semiconductor revenue.
HSBC also maintained a Buy rating with a $400 price target, following Broadcom’s announcement of the new ASIC customer. Morgan Stanley increased its price target to $382, citing Broadcom’s strong management and growth prospects in AI technologies. Meanwhile, Wolfe Research maintained a Peerperform rating, emphasizing the addition of a fourth XPU customer projected to significantly boost revenue in the latter half of 2026. These developments underscore Broadcom’s strategic advancements and potential for future growth.
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