Broadcom Inc. (NASDAQ: AVGO) is surging back into the spotlight as investor enthusiasm for AI infrastructure hits a new high. On June 30 AVGO is trading near $269.35, with multiple analysts boosting their price targets amid strong revenue forecasts and technological momentum.
Analysts turn bullish on Broadcom
- Jefferies raised its AVGO price target from $300 to $315, reiterating a Buy rating.
- HSBC recently upgraded the stock to Buy, setting a target of $400.
- Daiwa Securities lifted its target to $288, highlighting Broadcom’s strategic AI moves.
Broadcom insiders have also sold large volumes of stock this month, totaling nearly $50 million in filings—a sign of strong market activity around the stock.
Why analysts are so optimistic
AI-driven revenue surge
AI-related semiconductors now account for over 50% of Broadcom’s sales. The company is pivoting hard into custom silicon, betting big on demand from hyperscalers like Google, Meta, and OpenAI. Management estimates the serviceable market for custom chips at $15–20 billion, growing toward $55 billion by 2028.
Product innovation & partnerships
- Broadcom recently launched its Tomahawk 6 networking chip, doubling performance over previous generations.
- The company is collaborating with OpenAI, Apple, and three major cloud providers on new AI chips.
- Its co-packaged silicon photonics further enhances its position in next-gen AI infrastructure.
AVGO’s path to $500
According to analysts at Trefis, Broadcom’s earnings and revenue growth could propel the stock toward $500 in the coming years:
- Current price: ~$269
- Trailing EPS: $5.84
- P/E ratio: ~45x
- Forecasted revenue: Over $100 billion by 2029
- Net income margin: 50%
A sustained earnings multiple, strong customer retention, and margin expansion from high-value product lines are key catalysts.
Risks to watch
Despite its bullish outlook, Broadcom faces several headwinds:
- Customer concentration: Dependence on large clients poses risk.
- Competitive pressure: Players like Marvell and new entrants could challenge margins.
- Macroeconomic sensitivity: In past downturns, AVGO stock has underperformed the S&P 500.
During the 2022 inflation shock, AVGO dropped 37% vs. the S&P’s 25% decline. That pattern repeated during the COVID-19 correction. Investors should weigh growth potential against volatility risk.
Outlook: Broadcom remains an AI infrastructure leader
Broadcom’s dominance in custom AI chips and high-speed networking solutions gives AVGO a long growth runway. With Wall Street setting new price targets and AI adoption accelerating, AVGO remains one of the top-tier semiconductor plays heading into the second half of 2025.
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