Broadcom’s consensus analyst fair value has increased from $394.82 to $403.66 per share, following a modest upward revision in response to stronger AI revenue forecasts and major new customer wins. At the same time, the consensus discount rate has edged lower, signaling increased confidence and a lower assumed risk in Broadcom’s growth trajectory. Stay tuned to see how ongoing developments could continue to drive narrative updates for Broadcom stock in the months ahead.
Analyst Price Targets don’t always capture the full story. Head over to our Company Report to find new ways to value Broadcom.
🐂 Bullish Takeaways
Analysts remain largely optimistic on Broadcom, with numerous firms raising their price targets following ongoing AI-driven growth and significant new customer announcements.
Goldman Sachs increased its price target to $435 from $380 and maintains a Buy rating, citing elevated expectations tied to Broadcom’s custom XPU traction, strong AI revenue guidance, and high-profile partnerships with Google and OpenAI.
Raymond James resumed coverage with an Outperform rating and a $420 price target. The firm highlights Broadcom’s status as a share gainer in the AI market and the potential for consensus estimate upside.
Bocom initiated coverage with a Buy rating and a $425 price target. Mizuho and UBS raised their price targets to $430 and $415, respectively, following upward revisions in AI and EPS forecasts driven by strategic deals.
Barclays boosted its price target to $450 and emphasizes the contribution of the OpenAI collaboration, which the firm estimates is materially expanding Broadcom’s compute opportunity.
Analysts at KeyBanc, Cantor Fitzgerald, Deutsche Bank, and Oppenheimer also increased their price targets, ranging from $360 to $460, recognizing Broadcom’s robust execution, substantial customer diversification, and increasing confidence in future earnings growth.
Execution quality and continued customer wins, especially with leading cloud and AI customers, are cited as key drivers of the stock’s momentum. Management’s visibility and long-term leadership continuity further support bullish sentiment.
Most positive research underscores Broadcom’s strong positioning in custom AI silicon and network infrastructure, improved gross margin trajectory, and expanding total addressable market even as expectations build.
Some analysts point out that potential upside may already be priced into the shares and caution about near-term valuation risks. However, the consensus remains focused on the company’s execution and growth runway.
🐻 Bearish Takeaways
Bearish or more cautious commentary is limited, but some analysts note reservations regarding Broadcom’s valuation, with a few suggesting that much upside could already be reflected in the current share price.
Citi, while referencing Broadcom’s interest in Intel’s packaging technology, maintains a Neutral view on Qualcomm and a Sell rating on Intel. The firm stops short of attributing significant immediate benefit or material impact for Broadcom from those potential partnerships.
There are mentions of competitive risks. BofA cautions that large strategic investments in AI infrastructure by rivals like Nvidia may intensify the industry landscape, raising longer-term questions about partnership exclusivity and margin pressure.
Analysts also highlight risks related to execution, particularly tied to large customer deployments, volatility in AI and chip demand, and possible integration or execution pitfalls in highly competitive AI segments.
Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there’s more to the story. Head to the Simply Wall St Community to discover more perspectives or begin writing your own Narrative!
NasdaqGS:AVGO Community Fair Values as at Dec 2025
Apple is set to reduce its reliance on Broadcom by introducing its in-house N1 wireless networking chip across the entire iPhone 17 lineup. This shift signals Apple’s increased focus on self-developed chips and may decrease Broadcom’s future revenue from Apple deals.
OpenAI, supported by Microsoft, will begin mass production next year of a new AI chip co-designed with Broadcom. This initiative is intended to reduce dependency on Nvidia and further highlights Broadcom’s expanding presence in the custom AI silicon market.
Broadcom has announced the launch of Brocade X8 Directors and G820 switches, introducing the industry’s first 128G Fibre Channel platforms. These products are designed to meet the needs of high-demand enterprise AI applications and mission-critical workloads.
Broadcom is deepening its partnership with NEC to deploy VMware Cloud Foundation, enhancing the modernization and security of private cloud infrastructure for enterprise customers.
Consensus Analyst Fair Value: Increased from $394.82 to $403.66 per share, reflecting a modest upward revision.
Discount Rate: Decreased slightly from 10.68% to 10.52%, which suggests a lower risk premium is being applied.
Revenue Growth: Marginally improved from 29.96% to 30.45%, indicating slightly stronger growth expectations.
Net Profit Margin: Declined slightly from 44.08% to 43.84%, showing a small contraction in projected profitability.
Future P/E: Risen slightly from 44.57x to 45.11x, which implies a higher earnings multiple based on forward projections.
Narratives are a smarter way to invest, going beyond just numbers. On Simply Wall St’s platform, users create Narratives, which are stories linking their perspective on Broadcom with real financial forecasts and fair value, all in one place. Narratives help you judge whether to buy or sell by comparing Fair Value and Price. They update automatically whenever the latest news or earnings arrive. With millions of investors on our Community page, following a Narrative makes expert forecasting accessible for everyone.
Check out the original Broadcom Narrative for deeper insights and ongoing updates. Here’s why it matters:
Stay informed on how accelerating AI chip demand, custom solutions, and new partnerships are powering Broadcom’s growth and market leadership.
Understand the complex risks, from heavy customer concentration and competitive pressure to the major VMware integration, that could impact future earnings and margins.
Keep track of consensus analyst price targets, valuation changes, and major catalysts so you can act quickly when the narrative shifts.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include AVGO.
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