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Broadcom’s fair value estimate has shifted only marginally, with the model moving from US$456.56 to US$456.59, but that small change is backed by a slightly lower discount rate of 10.57% and a higher revenue growth assumption of 38.42%. This reflects research that leans on Broadcom’s AI accelerator and custom silicon exposure, including potential benefits from Google TPU adoption and its positioning in AI related hardware and infrastructure through 2026, while still weighing questions on execution, margins and premium pricing highlighted by more cautious analysts. Stay with this article to see how you can keep track of these evolving research views so you are not caught off guard as the Broadcom narrative shifts over time.
Stay updated as the Fair Value for Broadcom shifts by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Broadcom.
🐂 Bullish Takeaways
Mizuho lifted its Broadcom price target to US$480 from US$450, highlighting Broadcom as one of its top picks and pointing to AI accelerators and related hardware as key areas of opportunity.
Goldman Sachs raised its Broadcom target to US$435 from US$380 and flagged AI related revenue, including exposure to Google and OpenAI spending and custom XPU ramps, as important themes for how investors think about the stock.
Raymond James resumed coverage with an Outperform rating and a US$420 target, describing Broadcom as a share gainer in AI and pointing to room above consensus forecasts in its research note.
Multiple firms, including Citi and Wells Fargo, keep positive ratings in place, with Citi reaffirming its Buy stance in January and Wells Fargo upgrading Broadcom while arguing that prior gross margin worries were overdone.
🐻 Bearish Takeaways
Citi analyst Atif Malik trimmed the firm’s Broadcom target to US$458 from US$480 ahead of the March 4 earnings report, citing investor concerns around gross margin, tensor processing unit competition and software sales risk, even as the firm maintains a Buy rating.
DA Davidson started Broadcom at Neutral and questioned the stock’s premium multiple, adding to a group of more cautious voices that focus on valuation and the risk that much of the upside is already reflected in the current share price.
RBC Capital initiated with a neutral view, signaling that while Broadcom has meaningful AI exposure, some analysts prefer to wait for more clarity on execution and returns before assigning more aggressive targets.
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!
NasdaqGS:AVGO 1-Year Stock Price Chart
Broadcom introduced an enterprise Wi Fi 8 access point and switch platform built on the BCM49438 APU and Trident X3+ BCM56390 switch, aimed at AI ready enterprise networks. The platform features a unified architecture, MACsec security on all ports, and advanced telemetry across access points and campus switches.
The company launched its BCM4918 accelerated processing unit alongside dual band Wi Fi 8 devices BCM6714 and BCM6719, creating a unified Wi Fi 8 platform focused on high throughput, low latency, edge AI processing, and energy efficient home connectivity. Samples are available to early access customers.
Broadcom issued guidance for the first quarter of fiscal 2026, targeting approximately US$19.1b in revenue, which the company states is 28% higher than the prior year period.
The Board approved a quarterly cash dividend of US$0.65 per share for fiscal 2026, described as a 10% increase from the prior quarter, payable on December 31, 2025 to shareholders of record on December 22, 2025. Broadcom and ING also extended their collaboration, with ING adopting VMware Cloud Foundation 9.0 to upgrade its private cloud across multiple regions.
Fair Value: The fair value estimate of US$456.56 has edged slightly higher to US$456.59, so the model output is effectively unchanged at the headline level.
Discount Rate: The discount rate has moved from 10.66% to 10.57%, which modestly lifts the present value of the projected cash flows used in the model.
Revenue Growth: The revenue growth assumption has shifted from 37.60% to 38.42%, reflecting a small change in the expected pace of Broadcom’s top line expansion within the model.
Net Profit Margin: The net profit margin assumption has moved from 44.44% to 45.21%, implying a slightly higher share of revenue flowing through to earnings in the projections.
Future P/E: The future P/E multiple has changed from 40.66x to 39.16x, indicating a slightly lower valuation multiple being applied to those projected earnings.
Narratives on Simply Wall St are short, research based stories that connect a company’s business outlook to concrete numbers, including revenue, earnings, margins and a fair value estimate. Each Narrative ties the story to a financial forecast and fair value, then compares that to the current share price so you can judge your own buy or sell timing. Narratives sit inside the Community page, are easy to follow, and update automatically as new news, earnings and analyst inputs come through.
If you want the full story behind Broadcom’s fair value and AI exposure, read the original Narrative and follow it for future updates:
The Narrative “AVGO: AI Custom Silicon And TPU Demand Will Support Future Upside” sets out how custom AI accelerators, Ethernet networking and VMware Cloud Foundation adoption feed into revenue, margin and earnings assumptions.
It lays out the key risks in one place, including AI customer concentration, competition in XPUs and networking, VMware execution and Broadcom’s debt load, so you can test whether the assumptions fit your own view.
It connects all of that to a consensus fair value, expected revenue of US$119.6b and earnings of US$50.8b by about September 2028, and a future P/E of 45.8x, so you can compare those inputs with your own expectations.
Curious how numbers become stories that shape markets? Explore Community Narratives
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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