Broadcom (AVGO) stock gained about 11% in Friday’s pre-market trading after reporting strong results for the third quarter of Fiscal 2025 and upbeat guidance for Q4. The chipmaker continues to see strong demand from hyperscalers and steady momentum in AI, which has been the main driver of growth. Following the results, several Top Wall Street analysts raised their price targets while maintaining bullish views on the stock.
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Piper Sandler Highlights AI Strength and Margin Stability
Piper Sandler analyst Harsh Kumar raised his price target on Broadcom to $375 from $315 while keeping an Overweight rating. He said Broadcom’s results and outlook came in stronger than expected, helped by solid demand for AI.
Kumar noted that Broadcom has secured around $10 billion in custom XPU (AI accelerator) chip orders from a fourth customer, with deliveries set to start in the second half of Fiscal 2026. He added that networking stayed strong, software was stable, and future growth will likely come from XPUs. Margins held steady even with the rapid AI growth, which Kumar called a key positive. He expects 2026 and 2027 to be strong growth years for Broadcom and maintained his bullish view on the stock.
KeyBanc Sees $10B Boost from New AI Customer
KeyBanc analyst John Vinh raised his price target on Broadcom to $400 from $330, while also keeping an Overweight rating. Vinh said Broadcom posted solid Q3 results and guided higher for Q4. AI semiconductor revenue jumped 63% year-over-year to $5.2 billion and is expected to grow even more next quarter.
The analyst highlighted that Broadcom has now secured orders from a fourth AI customer, which he believes could be OpenAI, in addition to Google (GOOGL), Meta (META), and ByteDance. These orders are expected to contribute about $10 billion in revenue starting in Fiscal 2026. Vinh also highlighted leadership stability, as CEO Hock Tan will continue leading the company through at least 2030.
Is AVGO a Good Stock to Buy?
On TipRanks, AVGO stock has a Strong Buy consensus rating based on 25 Buys and one Hold assigned in the last three months. The average Broadcom stock price target of $329.50 suggests an upside potential of 7.64% from its current price.
