This article first appeared on GuruFocus.
GF Securities raised its price target on Broadcom (NASDAQ:AVGO) to $450 from a previous level, citing stronger expectations for Google’s custom chip shipments.
The stock edged up about 1.5% in morning trading following the upgrade.
Analyst Alicia Xia now expects total tensor processing unit shipments, a type of custom AI chip, to reach 4.5 million units in 2026 and 7.9 million units in 2027. The revision for 2027 was raised from an earlier estimate of 6 million units.
Xia said the upward adjustment reflects growing external sales momentum. Broadcom’s TPU shipments are projected at 4.1 million units in 2026 and 5.8 million in 2027, with the company likely to benefit as its chip models are currently ready for customer testing.
Average selling prices could continue an upward trend, the analyst added, with more complex designs expected in 2027. Xia reiterated a Buy rating on the semiconductor and software firm.
