RBC Lifts Broadcom Target to $360 after Record Q1 Revenue and Guidance
RBC Capital Markets raised Broadcom’s price target to $360 from $340 after record Q1 revenue of $19.3 billion (+29%) and adjusted EBITDA of $13.1 billion (68% margin). CEO Hock Tan forecasts Q2 revenue of $22 billion (+47%), semiconductor sales of $14.8 billion (+76%) and AI revenue up 140%.
1. RBC Price Target Increase
RBC Capital Markets raised its 12-month price target on Broadcom to $360 from $340 while maintaining a Sector Perform rating, noting the company’s consistent execution and bullish commentary for fiscal 2027.
2. Q1 Performance and Margins
Broadcom reported record Q1 2026 revenue of $19.3 billion, a 29% year-over-year increase, and delivered consolidated adjusted EBITDA of $13.1 billion, representing a 68% margin, driven largely by higher growth in AI semiconductors.
3. Fiscal 2026 Guidance
CEO Hock Tan announced expectations for Q2 revenue of approximately $22 billion, up 47% year-over-year, with semiconductor segment sales of $14.8 billion (up 76%) and AI semiconductor revenue projected to rise 140% year-over-year to $10.7 billion.