In the third quarter of 2025, Stanley Druckenmiller closed his position in Broadcom despite the chipmaker’s leadership in AI infrastructure. Broadcom controls roughly 75% of the custom AI ASIC market and posted AI-related chip revenue growth of 65% year-on-year to $20 billion. Wall Street forecasts 43% annual adjusted EPS growth through 2027, yet Druckenmiller opted to redeploy capital into a flash-memory name trading at a much higher multiple. His sale came when Broadcom’s forward P/E stood at 51x—well above its five-year average—and signals a rare vote of caution from one of history’s most successful money managers.

For 2026, Mizuho, Goldman Sachs and Bank of America have all elevated Broadcom to ‘Top Pick’ status. Mizuho’s $480 target implies 37% upside, citing a projected 32% increase in hyperscaler capex to $540 billion and sustained pricing power. Goldman’s inclusion on its U.S. Conviction List comes with a $450 objective and reflects Broadcom’s differentiated fundamentals among all sectors. Bank of America’s most bullish $500 target (42% upside) hinges on a 79% gross margin, underscoring the firm’s argument that the highest-margin fabless firms typically deliver the strongest returns.

As industry workloads shift from training models to widespread deployment, Broadcom’s application-specific integrated circuits designed for inference stand to gain share. The company reported a 28% increase in net revenue, a 97% rise in net income and a 93% jump in EPS year-over-year in its latest quarterly results. With a $1.6 trillion market cap and software contributions bolstering overall profitability, Broadcom is set to benefit from a chip market expected to grow at 16.1% annually through 2030. Leadership in wired and wireless networking further solidifies its role as a key supplier to the world’s largest cloud and AI developers.