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On Friday, TD Cowen analysts raised the price target for Broadcom Limited (NASDAQ:AVGO) stock to $290 from $200, while maintaining a Buy rating. The semiconductor giant, currently valued at $1.18 trillion, has seen its stock trading near its 52-week high of $265.43. The analysts noted a slight beat and raise in the company’s earnings, with second-quarter AI sales aligning with expectations and third-quarter guidance exceeding their model. According to InvestingPro data, the company boasts impressive gross profit margins of 76.3%.
The analysts expressed confidence in Broadcom’s AI networking and XPU franchises, highlighting a projected 60% growth in AI for the fiscal year 2026. This aligns with the company’s strong revenue growth trajectory, which InvestingPro data shows at 40.3% over the last twelve months. Despite limited additional comments on XPU engagements and the previously disclosed serviceable addressable market, the analysts view this growth outlook positively.
Broadcom’s stock has been outperforming year-to-date, and the analysts anticipate a muted response to the new price target. They reiterated their Buy rating, attributing the new price target to approximately 35 times their estimated earnings per share for fiscal year 2026.
The analysts also mentioned their slightly higher estimates for fiscal year 2025, with expectations for continued momentum in AI revenues contributing to the upward revision for fiscal year 2026.
In other recent news, Broadcom Limited has been the focus of several analyst firms, with notable updates on its stock price targets following its recent earnings report. Rosenblatt raised its price target to $340, highlighting a 46% quarter-over-quarter increase in AI revenue and projecting a 60% year-over-year growth in this segment. Meanwhile, Citi increased its target to $285, noting a strong performance in Broadcom’s AI segment, which accounted for 29% of its fiscal second-quarter 2025 sales, despite challenges with lower margins. BofA Securities adjusted its price target to $300, driven by a product transition in custom chips and an upgraded AI outlook for the second half of 2025 and fiscal year 2026. JPMorgan, on the other hand, raised its target to $325, following a favorable patent ruling for Acadia Pharmaceuticals, indirectly benefiting Broadcom. UBS also increased its target to $290, based on bullish AI demand and potential revenue growth for 2026 that exceeds market expectations by approximately 10%. Broadcom’s management has expressed confidence in sustaining growth, particularly in the AI sector, which is expected to drive significant revenue in the coming years. Despite some near-term challenges, the company’s strategic opportunities in AI and Ethernet technology continue to attract positive attention from analysts.
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