Broadcom (NASDAQ:AVGO) is back in the spotlight after a major Wall Street analyst raised their outlook on the company. As artificial intelligence spending accelerates and hyperscalers invest heavily in custom chips, Broadcom has become one of the most important behind-the-scenes players powering next-generation computing. That’s exactly why the latest Broadcom stock price target increase is drawing attention from both growth investors and long-term tech bulls.
Broadcom isn’t just a semiconductor company—it also operates a large infrastructure software business, giving it multiple engines of revenue growth. With its strong cash flow profile, expanding AI exposure, and improving profitability trends, Broadcom is increasingly being viewed as a core holding in the AI supply chain.
Broadcom’s Business Mix Keeps Getting Stronger
Broadcom builds advanced chips used in data centers, networking, wireless connectivity, and enterprise-grade computing environments. These products are critical for companies that need speed, scale, and reliability—especially in AI workloads. In addition, Broadcom sells infrastructure software that supports cybersecurity, networking, and enterprise operations, adding a more stable recurring-revenue component to its overall business.
That combination matters when investors evaluate the Broadcom stock price target outlook. Semiconductor cycles can be volatile, but Broadcom’s software segment helps smooth results while the AI chip boom creates powerful upside potential.
Broadcom Stock Performance Has Been Volatile
Broadcom shares have delivered impressive long-term returns, even if recent trading has been choppy. In the near term, AVGO has seen pullbacks as the market reacts to volatility and shifting expectations around tech valuations. Short-term weakness has pressured performance over the past month and quarter, while longer-term investors have still benefited from strong gains over the last year and beyond.
When comparing Broadcom to broader market benchmarks like the S&P 100 Index (NYSEARCA:OEF), the contrast is clear: indexes may look steadier in the short run, but top-performing AI-linked names can deliver much stronger upside over longer periods. This dynamic is one reason analysts continue to revisit the Broadcom stock price target story, especially after major earnings beats.
Broadcom’s Latest Earnings Show Real Momentum
Broadcom’s most recent quarterly results were a key catalyst supporting a higher Broadcom stock price target. The company delivered adjusted earnings per share above expectations while posting record quarterly revenue. Even more important, management highlighted accelerating AI-related demand, which has become one of the biggest growth drivers across its semiconductor business.
Broadcom also reported strong profitability metrics, including expanding adjusted EBITDA and higher free cash flow. These results matter because they show Broadcom is not only growing—it’s doing so efficiently, converting revenue into cash at an elite rate. That type of performance gives analysts more confidence in future earnings power, which can justify premium valuation multiples.
Looking ahead, Broadcom also issued upbeat guidance for the next quarter, signaling continued strong growth and margin resilience. For investors tracking the Broadcom stock price target narrative, forward guidance often carries as much weight as the quarter that just ended.
Analyst Upgrade Tied to Google TPU Opportunity
The biggest headline came when Wolfe Research upgraded Broadcom to “Outperform” and raised its Broadcom stock price target to $400. The reasoning centers on Broadcom’s role in supplying chips tied to Google’s TPU (Tensor Processing Unit) program, which is increasingly seen as a serious alternative to Nvidia’s dominant AI GPU platform.
Alphabet’s Google (NASDAQ:GOOG) (NASDAQ:GOOGL) has been scaling its TPU ecosystem, and expanding access to third parties could drive even more demand for custom accelerators. Wolfe’s channel checks suggest TPU shipments could rise dramatically in the coming years, potentially reaching multi-million unit volume by 2028.
If that scenario plays out, Broadcom’s AI-related chip revenue could surge. Wolfe also increased longer-term forecasts, pointing to a meaningful jump in projected revenue and earnings per share as AI infrastructure spending ramps up.
Nvidia Still Leads, But Competition Is Growing
Nvidia (NASDAQ:NVDA) remains the clear leader in AI GPUs, and its ecosystem advantage is massive. However, hyperscalers want more control over costs, performance, and supply chains—making custom chips like Google TPUs increasingly attractive. Broadcom benefits from this trend by acting as a key enabler behind the scenes.
This is why the latest Broadcom stock price target increase isn’t just about one quarter’s results. It reflects a broader shift in AI compute strategy across the industry, where multiple chip architectures can win.
What Could Drive More Upside for AVGO?
Beyond Google, Wolfe also noted additional potential upside catalysts tied to AI projects involving Meta Platforms (NASDAQ:META) and OpenAI. While not all opportunities are guaranteed to translate into revenue immediately, they strengthen the narrative that Broadcom is becoming a central supplier in the AI arms race.
At the same time, Broadcom’s valuation framework remains a key factor. Wolfe’s price target uses a forward multiple that is still below Broadcom’s historical average, suggesting the firm believes the market may still be underestimating AVGO’s long-term earnings potential.
Should Investors Buy Broadcom Stock Now?
Despite recent weakness, Broadcom still has strong support from Wall Street analysts, with many rating it a buy and expecting meaningful upside from current levels. For investors, the appeal comes down to three factors: durable cash generation, expanding AI-driven semiconductor demand, and a diversified business model that reduces reliance on any single product cycle.
In short, the raised Broadcom stock price target reflects growing confidence that AVGO can remain a major winner in the AI era—even as competition intensifies and the market continues to swing between optimism and caution.
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