Broadcom: Expanding AI Infrastructure Roadmap Drives Upside and Supports Buy Rating

Joshua Buchalter, an analyst from TD Cowen, reiterated the Buy rating on Broadcom. The associated price target remains the same with $405.00.

Joshua Buchalter has given his Buy rating due to a combination of factors centered on Broadcom’s expanding role in AI infrastructure and its better‑than‑anticipated outlook. He highlights that Broadcom not only modestly exceeded quarterly expectations but also issued guidance roughly $3 billion above prior forecasts, then used the earnings call to lay out an unusually detailed multiyear roadmap. Management identified about 6 gigawatts of custom XPU programs, in addition to Google, ramping in fiscal 2027 and articulated a path to more than $100 billion in AI‑related chip revenue that year, including networking silicon but excluding potential rack‑level systems revenue.

Buchalter views this AI pipeline as creating substantial upside to his revenue model, even after lifting his fiscal 2027 top‑line estimate to roughly $162 billion with $113 billion attributed to AI, while acknowledging investors may apply a higher discount to non‑Google, non‑TPU projects and should expect volatility as these deployments begin. Despite these uncertainties, he believes the magnitude and visibility of the AI opportunity justify a constructive stance and support his $405 price target, especially given Broadcom’s strong positioning across both compute and networking and management’s confidence in the durability of existing copper‑based connectivity alongside its optical leadership.

According to TipRanks, Buchalter is a 5-star analyst with an average return of 15.7% and a 58.33% success rate. Buchalter covers the Technology sector, focusing on stocks such as Broadcom, STMicroelectronics, and Texas Instruments.

In another report released today, TipRanks – Google also reiterated a Buy rating on the stock with a $348.00 price target.