Broadcom's Performance: Broadcom has seen a remarkable 957% increase in stock value over the past five years, significantly outperforming the S&P 500, which only grew to $209 from a $100 investment.
AI Spending Impact: The surge in Broadcom's stock is attributed to increased AI spending by tech companies, despite concerns about its high price-to-earnings (P/E) ratio, which exceeded 180 times trailing earnings.
Valuation Insights: While high valuations typically raise red flags for investors, Broadcom's stock has continued to rise, demonstrating that valuation isn't the sole indicator of a company's potential success.
Future Outlook: Although Broadcom may not replicate its past five-year gains, its position as a leading chipmaker and key partner for major tech firms suggests it will continue to perform well in the future.
AVGO
$339.81+Infinity%1D
Analyst Views on AVGO
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 398.73 USD with a low forecast of 300.00 USD and a high forecast of 480.00 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.
30 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 398.73 USD with a low forecast of 300.00 USD and a high forecast of 480.00 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 Buy
2 Hold
0 Sell
Strong Buy
Current: 359.930
Low
300.00
Averages
398.73
High
480.00
Current: 359.930
Low
300.00
Averages
398.73
High
480.00
Piper Sandler
Harsh Kumar
Overweight
maintain
$375 -> $430
2025-12-12
New
Reason
Piper Sandler
Harsh Kumar
Price Target
$375 -> $430
2025-12-12
New
maintain
Overweight
Reason
Piper Sandler analyst Harsh Kumar raised the firm's price target on Broadcom to $430 from $375 and keeps an Overweight rating on the shares. The firm says the company continues to be "on a roll," delivering blockbuster results and guide. In addition to beating expectations, Broadcom is seeing sizable growth in its AI business, primarily driven by XPUs but also by networking. The company expects its AI business to deliver $8.2B in the January 2026 quarter, up roughly 100% year-over-year. Piper remains a buyer of Broadcom, especially on any weakness, and believes that gross margin dollars is the right approach for the XPU business.
Mizuho
Vijay Rakesh
Outperform
maintain
$435 -> $450
2025-12-12
New
Reason
Mizuho
Vijay Rakesh
Price Target
$435 -> $450
2025-12-12
New
maintain
Outperform
Reason
Mizuho analyst Vijay Rakesh raised the firm's price target on Broadcom to $450 from $435 and keeps an Outperform rating on the shares.
Citi
Buy
maintain
$415 -> $480
2025-12-12
New
Reason
Citi
Price Target
$415 -> $480
2025-12-12
New
maintain
Buy
Reason
Citi raised the firm's price target on Broadcom to $480 from $415 and keeps a Buy rating on the shares. The company reported upside to estimates on continued artificial intelligence strength, the analyst tells investors in a research note. Citi says Anthropic was announced as Broadcom's fourth artificial intelligence customer. The firm expects more AI customers and upside in the future.
Oppenheimer
Oppenheimer
Outperform
maintain
$435 -> $450
2025-12-12
New
Reason
Oppenheimer
Oppenheimer
Price Target
$435 -> $450
2025-12-12
New
maintain
Outperform
Reason
Oppenheimer raised the firm's price target on Broadcom (AVGO) to $450 from $435 and keeps an Outperform rating on the shares. The firm notes the company reported beat/raise results Thursday, with strength led by AI accelerators and networking. AI semi revenues in Q1 expected to be $8.2B, up 2 times year-over-year, fueled by Google (GOOG) TPU, Meta (META), and ByteDance. Oppenheimer also highlights that its $10B fourth customer is Anthropic, and that the company secured a $1B fifth customer, which the firm believes likely to be xAI.
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.
