NVIDIA launches Jetson Thor robotics computers for physical AI systems
Investing.com - Morgan Stanley (NYSE:MS) has raised its price target on Broadcom Limited (NASDAQ:AVGO) to $338.00 from $270.00 while maintaining an Overweight rating on the stock. The semiconductor giant, currently valued at $1.4 trillion, has shown impressive revenue growth of 33.85% over the last twelve months, with analyst targets ranging from $210 to $400.
The investment bank increased its 2026 MW EPS multiple from 40x to 50x, resulting in the higher price target based on $6.77 MW EPS including stock-based compensation.
The new target represents approximately 41x non-GAAP EPS of $8.64, according to Morgan Stanley’s analysis.
Morgan Stanley noted that Broadcom "seems the most uncontroversial of the AI names" since the company’s 2027 SAM (serviceable addressable market) raised longer-term expectations.
The firm believes Broadcom has "one of the most compelling bull cases" and that while there is "significant optionality" in the company’s long-term outlook, their "ambitious SAM is materially possible."
In other recent news, Broadcom has announced the shipping of its new Tomahawk Ultra Ethernet switch, which is designed for high-performance computing and artificial intelligence applications. This switch offers a 51.2 Tbps capacity with significantly reduced latency of 250 nanoseconds, enhancing its performance for AI workloads. Additionally, Mizuho (NYSE:MFG) has raised its price target for Broadcom to $329, citing opportunities in China due to the resumption of AI GPU shipments. Oppenheimer has also increased its price target for Broadcom to $305, attributing this to the company’s expanding earnings power. Both firms maintain an Outperform rating on the stock. These developments come as Broadcom continues to benefit from persistent demand for AI and networking chips. The company is also adding high-margin, recurring software revenue through recent acquisitions.
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