Broadcom (AVGO) Price Target Raised to $480, Positive Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 09 2026
0mins
Should l Buy AVGO?
Source: Fool
- Stock Price Increase: Broadcom (AVGO) shares are up 4.1% today, currently trading at $346.74, indicating a positive market sentiment following a 3% decline yesterday, which reflects investor confidence in its future performance.
- Analyst Rating Upgrade: Mizuho analyst Vijay Rakesh raised Broadcom's price target from $450 to $480, showcasing a reassessment of semiconductor valuations and reinforcing Broadcom's market position for 2026.
- Market Capitalization: With a market cap of $1.6 trillion, Broadcom demonstrates significant influence in the semiconductor sector, indicating strong investor confidence in its long-term growth potential.
- Valuation Analysis: Despite a high price-to-earnings ratio of 69.7 compared to a five-year average of 40.2, analysts believe Broadcom remains attractive, suggesting that even in a high valuation context, it is still one of the semiconductor stocks to watch in 2026.
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Analyst Views on AVGO
Wall Street analysts forecast AVGO stock price to rise
30 Analyst Rating
29 Buy
1 Hold
0 Sell
Strong Buy
Current: 332.540
Low
370.00
Averages
457.75
High
525.00
Current: 332.540
Low
370.00
Averages
457.75
High
525.00
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.
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- Robust Customer Orders: Major AI companies like Google and Anthropic have placed orders totaling $21 billion for Broadcom's Ironwood chips, indicating the increasing importance of its hardware in AI development and further solidifying its market share.
- Accelerating Revenue Growth: Broadcom anticipates total revenue of approximately $19.1 billion for the first quarter of fiscal 2026, representing a 28% year-over-year increase, with AI semiconductor revenue expected to reach $8.2 billion, showcasing strong growth in AI hardware sales.
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- Robust Customer Orders: Major AI companies like Google and Anthropic have placed orders totaling $21 billion for Broadcom's Ironwood chips, indicating the increasing importance of its hardware in AI development and further solidifying its market share.
- Accelerating Revenue Growth: Broadcom anticipates total revenue of approximately $19.1 billion for the first quarter of fiscal 2026, representing a 28% year-over-year increase, with AI semiconductor revenue expected to reach $8.2 billion, showcasing strong growth in AI hardware sales.
- Valuation and Investment Advice: Despite Broadcom's high P/E ratio of 68, which is more than double the Nasdaq-100's 32, investors should note its projected 50% annual revenue growth, suggesting a long-term hold strategy for better returns.
See More
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- Growing Market Demand: Analyst James Schneider from Goldman Sachs highlights a surge in demand for high-speed, short-range connectivity in AI data centers, which is expected to further drive growth for Credo Technology Group, showcasing the company's strong market potential.
- Buy Rating and Price Target: Goldman Sachs initiates coverage on Credo with a buy rating and sets a 12-month price target of $165, indicating a 29% upside from Wednesday's close, reflecting the analyst's confidence in the company's future performance.
- Significant Technological Advantage: Credo's Active Electrical Cables (AECs) technology offers low-cost, high-bandwidth, and highly reliable connectivity solutions, and Schneider believes this technology will remain mainstream for at least the next five years, further solidifying the company's market position.
- Diversification Strategy: Schneider commends Credo's diversification efforts into optical solutions, which he believes will support long-term growth, while also appreciating the company's carefully managed guidance and investor messaging.
See More
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- Intensifying Tech Competition: OpenAI's Sam Altman noted that China's progress in artificial intelligence is 'remarkable,' particularly in the race against the U.S. to develop artificial general intelligence (AGI), showcasing rapid advancements by Chinese tech companies across various fields.
- Proximity to Frontier: Altman emphasized that while Chinese tech firms are nearing the technological frontier in some areas, they lag in others, indicating a potentially uneven development landscape that could impact the global tech competition framework.
- Societal Application Rollout: As China accelerates the deployment of AI technologies across society, Altman's remarks reflect an acknowledgment of China's increasingly significant role in the global tech ecosystem, which may attract more investment and collaboration opportunities.
- Ongoing Monitoring of Developments: This is a breaking news story, and Altman's comments may trigger market interest in the future development of Chinese tech companies, prompting investors to closely monitor subsequent developments and policy changes.
See More
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- Competitive Frontier: Altman noted that while Chinese tech companies are nearing the frontier in some areas, they lag in others, indicating a potentially uneven development that could impact the global tech competition landscape.
- Societal Technology Rollout: As China accelerates the rollout of AI technologies across various societal sectors, Altman's comments underscore China's significance in the global tech ecosystem, which may attract more investment and collaboration opportunities.
- International Cooperation Potential: Altman's remarks not only reflect recognition of China's tech progress but may also lay the groundwork for future U.S.-China cooperation in AI, fostering technology sharing and innovation.
See More
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- Fed Policy Divisions: The minutes released on Wednesday indicate that most Federal Reserve officials agreed to hold interest rates steady at the January meeting, yet there were disagreements on the future monetary policy path, with some prioritizing labor market support over inflation control, potentially impacting future rate decisions.
- Market Expectation Shifts: Traders estimate a roughly 50% chance of the Fed cutting rates in June, suggesting a shift in market expectations regarding future interest rate movements, which could influence investor decisions and market volatility.
- AI Summit Highlights: At the AI Impact Summit in India, business leaders including OpenAI CEO Sam Altman and Alphabet CEO Sundar Pichai attended, with Adani announcing a $100 billion investment in AI data centers in India, showcasing a strong commitment to the AI sector.
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See More
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- Investment Commitment: Amazon and Microsoft have pledged to invest $50 billion in India's AI ecosystem, demonstrating confidence in the country's technological development while providing local businesses with the necessary funding to accelerate growth in the AI sector.
- Infrastructure Development: Blackstone's $600 million investment in Indian AI infrastructure startup Neysa highlights the importance of foreign capital in the Indian AI market, which is expected to drive innovation and application of related technologies.
- Policy Support: The Indian government has announced a 400 billion Indian rupee ($4.4 billion) push for electronics manufacturing and a tax holiday for foreign cloud service companies using Indian data centers, aiming to attract more international firms to participate in local AI development.
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