Spain’s credit rating upgraded to ’A+’ by S&P on strong growth
Investing.com - Truist Securities raised its price target on Broadcom Limited (NASDAQ:AVGO) to $365.00 from $295.00 on Friday, maintaining a Buy rating on the semiconductor company. The stock, which has delivered a remarkable 102% return over the past year and currently trades near its 52-week high of $317.35, continues to demonstrate strong momentum.
The price target increase follows Broadcom’s quarterly results that showed a significant uptick in artificial intelligence (AI) infrastructure backlog, including the addition of a fourth AI infrastructure customer.
Truist Securities noted that Broadcom’s existing AI customers are expected to continue growing at approximately 60% in fiscal year 2026, while the new customer would add $10 billion to sales in the second half of 2026.
The research firm also highlighted management’s indication that AI growth appears set to accelerate again in fiscal year 2027, prompting Truist to raise its calendar year 2026 earnings per share estimate to $10.46 from $9.18.
The new price target represents a 35x multiple, which Truist describes as a 13x premium to the S&P 500 but "still cheap versus AI peers."
In other recent news, Broadcom has been the focus of several analyst upgrades following its impressive financial performance and growth in the artificial intelligence sector. KeyBanc, Bernstein, and Piper Sandler have all raised their price targets for Broadcom, with KeyBanc and Bernstein both setting targets at $400, citing strong results in AI semiconductor performance. Broadcom reported fiscal third-quarter 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. This growth is attributed to a 63% year-over-year increase in AI semiconductor revenues, which is expected to accelerate further in the fiscal fourth quarter. TD Cowen also increased its price target to $370, maintaining a Buy rating, due to Broadcom’s robust results and guidance.
Additionally, Piper Sandler highlighted Broadcom’s $10 billion XPU order from a fourth customer, with delivery anticipated in the second half of fiscal year 2026. Meanwhile, Celestica has gained attention as BMO Capital Markets expects it to be a key supplier for OpenAI’s custom servers, leveraging Broadcom’s silicon. These developments underscore the growing importance of AI in Broadcom’s business strategy, as evidenced by the company’s strong financial results and optimistic analyst projections.
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