Broadcom Stock Target on the Rise: $392.38!

Broadcom stock's consensus analyst price target has reached $392.38 with recent updates, showing an increase from the previous $386.68 target. This modest increase reflects analysts' renewed optimism, alongside strong artificial intelligence partnerships and increased demand for specialized chips. It is important for investors to closely monitor updates regarding Broadcom's evolving market narrative.

Analyst Targets may not always capture the entire story. If you want to learn more about valuation methods for Broadcom, you can check our company report.

Positive Developments

Many analysts have raised their price targets for Broadcom, reflecting confidence in the company's execution capabilities and the strong momentum in AI and specialized chip solutions. Key updates include:

• UBS raised its price target from $365 to $415, indicating that large-scale deployments are expected to increase and earnings per share could reach $13.50 in 2027 and $20 in 2028.
• Barclays increased its price target from $400 to $450, emphasizing that the agreement with OpenAI will contribute $140 billion.
• Deutsche Bank raised its target from $350 to $400, highlighting the significance of the strategic partnership with OpenAI.
• Mizuho increased its price target from $410 to $430, estimating that the ASIC partnership with OpenAI could be valued at up to $200 billion.

KeyBanc and Cantor Fitzgerald reiterated their Overweight ratings, referring to strong quarterly results and rapid customer diversification in AI. Analysts note that firms like Oppenheimer and Morgan Stanley emphasize the company's leadership in specialized AI silicon.

While the majority of analyses exhibit an optimistic stance, some analysts point out that valuations may be high and that the increase has been partially reflected in prices. Mizuho and Oppenheimer have acknowledged these concerns despite raising their forecasts.

Negative Developments

Some analysts highlight the increasing competition in the AI chip market, particularly due to Nvidia's large-scale investments and partnerships. BofA notes that this situation could raise concerns about Broadcom's ability to maintain its market share and pricing power.

Barclays points out that despite Broadcom's significant AI agreements, general-purpose silicon (non-specialized) will still manage most of the OpenAI workloads, indicating a potential risk to Broadcom's long-term revenue projections.

Citi has reduced Nvidia's 2026 GPU sales forecasts because of Broadcom's AI chip growth, emphasizing that competition across the sector may have negative impacts on guidance.

Before making an investment decision, it is important to assess whether Broadcom's AI leadership and software diversity will outweigh the risks of customer concentration and high debt risk.