Broadcom Reaffirms Buy at $475 Target as AI Market Swells to $1.4T
Broadcom received a $475 price target from UBS reaffirming a Buy rating despite software multiple compression and VMware contract renewals causing customer churn in 2026-27. Bank of America lifted its 2030 AI data-center market estimate to $1.4 trillion and raised Broadcom’s 2026 revenue and EPS forecasts by 5% and 4%.
1. UBS Reaffirms Buy Rating with $475 Target
UBS analysts maintained a Buy rating on Broadcom with a $475 price target, acknowledging software-sector multiple compression but citing durable semiconductor growth to justify the premium valuation.
2. AI Data Center Market Forecast Upgraded
Bank of America raised its 2030 AI data-center total addressable market estimate from $1.2 trillion to $1.4 trillion, projecting 100% AI system growth in 2026 and boosting Broadcom’s fiscal 2026 revenue and EPS forecasts by 5% and 4% respectively.
3. VMware Customer Churn Risks
UBS cautioned that as three-year VMware contracts come up for renewal in 2026-27, customer turnover could increase, posing a potential medium-term hurdle for Broadcom’s enterprise software segment.
4. Ark Invest Acquires $8M in Broadcom Shares
Cathie Wood’s Ark Invest purchased 24,205 Broadcom shares across its ARKK and ARKQ ETFs, investing approximately $8 million and underscoring continued institutional confidence.