Broadcom (AVGO), a semiconductor and infrastructure software company, is set to report its Q3 FY25 results after the close on Thursday, September 4. In a new note today, Cantor Fitzgerald analyst C.J. Muse reiterated an Overweight rating and raised the price target to $350 from $300, calling it a ‘Top Pick’ on AI strength and signs of recovery in its core markets.
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It is worth noting that Muse ranks 130 out of more than 10,000 analysts tracked by TipRanks. He has a success rate of 69%, with an average return per rating of 27.70% over a one-year timeframe.
Why Muse Is Bullish on AVGO Stock
The 5-star analyst said he expects a modest beat and raise in Q3, with upside led by Broadcom’s Semiconductor Solutions segment, especially its Custom Silicon chips. These are specialized processors built for big customers and can turn into large, long-term contracts for Broadcom. He sees strong demand from Google’s (GOOGL) next-gen TPU v6 and the upcoming TPU v7p, which will ramp in the second half of the year. He also expects Meta’s (META) in-house MTIA chips to scale more meaningfully in the October quarter.
The analyst added that investors will be watching to see if current AI chip projects could turn into high-volume orders. He estimates Custom Silicon revenue could reach $25–30 billion in 2026 and more than $40 billion in 2027, which could help Broadcom deliver earnings of $10 per share in 2026 and $13 per share in 2027.
Muse also expects signs of a recovery in Broadcom’s cyclical chip business starting in the July quarter, after nine straight quarters of declines. At the same time, he noted that the company’s Infrastructure Software segment should remain stable and provide steady earnings.
Is AVGO Stock a Buy, Sell, or Hold?
Overall, Wall Street has a Strong Buy consensus rating on Broadcom stock based on 27 Buys and two Hold recommendations. The average AVGO stock price target of $313.63 indicates 5.5% upside potential.
