Broadcom Shares Surge as Analysts Raise Targets to $500 on AI Growth
Broadcom beat Q1 estimates and raised Q2 guidance, prompting analysts to lift price targets to $480–$500. AI networking revenue grew to one-third of AI sales and is set to reach 40% in Q2, with expectations of over $65 billion in AI revenues in FY26 and $100 billion in FY27.
1. Analyst Upgrades and Price Targets
JPMorgan raised its price target from $475 to $500 while Goldman Sachs lifted its target to $480. Rosenblatt and Benchmark maintained Buy ratings with targets of $500 and $485 respectively, reflecting confidence in Broadcom’s AI-driven outlook.
2. Strong AI Revenue Trajectory
AI networking accounted for one-third of AI revenues in Q1 and is expected to reach 40% in Q2 with over 50% quarter-over-quarter growth. The company is on track for more than $65 billion in AI revenues in FY26 and aims for $100 billion in FY27.
3. Key Partnerships
Broadcom highlighted partnerships with OpenAI, Anthropic and Meta as key drivers of AI segment growth. Analysts also cite potential orders from SoftBank and Bytedance to expand the customer base.
4. Stock Performance
Shares climbed 4.24% to $331.40, marking a 74% gain over the past year. The stock trades within a 52-week range of $138.10 to $414.61.