Broadcom Inc's shares fell by 5.00% in pre-market trading, crossing below the 5-day SMA. This decline follows a mixed market performance, with the Nasdaq-100 down 0.33% and the S&P 500 down 0.03%.
Despite Broadcom's fourth-quarter results exceeding expectations with nearly double net income, shares fell 4.5% in after-hours trading due to concerns over its major customer Google potentially shifting to in-house chip production, which could impact future profit margins. This situation reflects a sector rotation as investors reassess their positions in semiconductor stocks amid broader market weakness.
The implications of this decline highlight the sensitivity of Broadcom's stock to its customer dynamics, particularly with Google. Investors will be closely monitoring any developments regarding Google's chip production strategy, as it could significantly influence Broadcom's future revenue and profitability.
Wall Street analysts forecast AVGO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AVGO is 462.58 USD with a low forecast of 390.00 USD and a high forecast of 525.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
28 Analyst Rating
Wall Street analysts forecast AVGO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AVGO is 462.58 USD with a low forecast of 390.00 USD and a high forecast of 525.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
27 Buy
1 Hold
0 Sell
Strong Buy
Current: 320.050
Low
390.00
Averages
462.58
High
525.00
Current: 320.050
Low
390.00
Averages
462.58
High
525.00
Jefferies
Blayne Curtis
Buy
maintain
$250 -> $275
2026-01-16
Reason
Jefferies
Blayne Curtis
Price Target
$250 -> $275
AI Analysis
2026-01-16
maintain
Buy
Reason
Jefferies analyst Blayne Curtis raised the firm's price target on Nvidia (NVDA) to $275 from $250 and keeps a Buy rating on the shares as the firm rolls out its Accelerator builds and corresponding models to include 2028 coming out of CES and heading into the new year. The analyst's Top Pick in the group remains Broadcom (AVGO), where it now models calendar year 2028 to greater than $19 in EPS with its bottom-up build suggesting $25 of EPS potential, the analyst tells investors. Nvidia "remains pretty cheap," trading at mid-teens multiple to its bottom-up implied calendar year 2027 estimate, the analyst added.
Mizuho
Vijay Rakesh
Outperform
upgrade
$450 -> $480
2026-01-09
Reason
Mizuho
Vijay Rakesh
Price Target
$450 -> $480
2026-01-09
upgrade
Outperform
Reason
Mizuho analyst Vijay Rakesh raised the firm's price target on Broadcom to $480 from $450 and keeps an Outperform rating on the shares. The firm adjusted targets in the semiconductors and semiconductor capital equipment group as part of its 2026 outlook. Mizuho sees continued upside for the group in 2026 due to "attractive valuations," but more modest than 2025. The analyst' top sectors in 2026 are AI accelerators and wafter fab equipment, Optical, and memory, while the firm remains cautious on electric vehicles, autos and analog as well as computers and handsets. Mizuho's top picks for 2026 are Nvidia, Lumentum and Broadcom.
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Goldman Sachs
Buy
maintain
$450
2026-01-05
Reason
Goldman Sachs
Price Target
$450
2026-01-05
maintain
Buy
Reason
Goldman Sachs analysts added Broadcom to the firm's US Conviction List as part of its monthly update. The company's "dominant" position in enterprise networking silicon will drive market share gains in customer silicon processors for major U.S. hyperscalers, Goldman contends. It keeps a Buy rating on the shares with a $450 price target.
Truist
Buy
maintain
$500 -> $510
2025-12-19
Reason
Truist
Price Target
$500 -> $510
2025-12-19
maintain
Buy
Reason
Truist raised the firm's price target on Broadcom to $510 from $500 and keeps a Buy rating on the shares. The firm adjusted price targets in the semiconductor and artificial intelligence group after establishing 2027 estimates. Truist recognizes the challenges of finding the power to run AI infrastructure and getting the funding to pay for it. However, the firm believes AI infrastructure semiconductor stocks "remain cheap" relative to their growth. It sees "more upside pressure" to estimates for the group relative to the diversified analog semis heading into 2026. AI capital expenditure upside will continue in 2026, the analyst tells investors in a research note.
About AVGO
Broadcom Inc. is a global technology firm that designs, develops, and supplies a range of semiconductors, enterprise software and security solutions. The Company operates through two segments: semiconductor solutions and infrastructure software. Its semiconductor solutions segment includes all of its product lines and intellectual property (IP) licensing. It provides a variety of radio frequency semiconductor devices, wireless connectivity solutions, custom touch controllers, and inductive charging solutions for mobile applications. Its infrastructure software segment includes its private and hybrid cloud, application development and delivery, software-defined edge, application networking and security, mainframe, distributed and cybersecurity solutions, and its FC SAN business. It provides a portfolio of software solutions that enable customers to plan, develop, automate, manage and secure applications across mainframe, distributed, mobile and cloud platforms.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
