Analysts from several major Wall Street banks walked away from Broadcom ‘s latest quarterly report with more conviction on the stock. The chipmaker reported fiscal second-quarter revenue and profits on Thursday that exceeded analysts’ estimates, and also gave strong guidance for the current quarter. Broadcom’s adjusted earnings per share of $1.58 on revenue of $15 billion beat the expected $1.56 per share and $14.99 billion from analysts polled by LSEG. Broadcom saw $4.4 billion in AI revenue during the quarter and said it expects $5.1 billion in AI chip sales in its fiscal third quarter. Shares dipped 2% in premarket trading as the company gave a weaker forecast for its non-AI semiconductor revenue, where analysts were hoping to see signs of a cyclical recovery. The stock has soared 45% in the past three months. Analysts held to a long-term bullish outlook on Broadcom and praised what they called strong growth visibility heading into its next fiscal year, confident in management reaffirming its hyperscale customers and highlighting a well-positioned networking business amid continued AI demand. Bank of America, for example, said to “ignore quarterly noise” and focus on Broadcom’s strong AI growth targets. Take a look at what some had to say: JPMorgan: overweight, price target $325 from $250 Analyst Harlan Sur said Broadcom remains his top pick in semiconductors. His bullish price target indicates roughly 25% upside ahead for the stock over the next year. “We are encouraged by team’s strong line of sight to FY26 AI revenue profile driven by strong cloud/hyperscaler capex spending trends with continued focus on AI training combined with accelerating AI inference workloads, continued ramp of Google’s next-gen TPU v6/v7 3nm AI accelerator ASICs, ramp up of Meta 3nm, and continued strong adoption of ethernet networking,” he wrote in a note to clients. Overall, the team continues to drive a solid revenue growth profile even in a period of macro volatility given its portfolio breadth/diversification/product cycles.” UBS: buy, lifts price target to $290 Analyst Timothy Arcuri bumped up his price target on Broadcom and called it “a clear AI winner.” But the stock could consolidate some of its recent gains in the near term given already high investor expectations, he said. “Beyond the near-term, AVGO is likely to win on multiple fronts as hyperscaler customers look to create large heterogeneous compute clusters using either custom ASIC (the vast majority of which we think will be made by AVGO) or AMD alongside NVDA GPUs,” Arcuri said in a Friday note. “AVGO’s opportunity to link this all together using Ethernet should also scale alongside these solutions and AVGO also benefits from scaling out from cluster to cluster given its existing dominance in this market.” Wells Fargo: equal weight, price target to $255 Analyst Aaron Rakers’ price target implies Broadcom shares are expensive, and could fall about 2% from Thursday’s close. Rakers highlighted Broadcom’s “sustained AI momentum” into fiscal year 2026. “We continue to see shares representing a balanced risk/reward at current levels with significant leverage and an expectation that future acquisitions will remain a use of capital keeping us on the sidelines,” Rakers said in a Thursday note. Deutsche Bank: buy, price target to $270 from $205 Analyst Ross Seymore expects the lack of recovery in Broadcom’s non-AI business to remain a headwind heading into the fiscal fourth quarter, but expects greater focus on the growth trajectory of the company’s AI business in the future. “Overall, the combination of secular growth (AI), continued software integration and execution (Vsphere contract conversions), and a potential cyclical rebound in the non-AI semis components should set the company up well for both the short- and longterm,” Seymore said in a note. “Consequently, with our increased confidence in AVGO’s ability maintain its AI growth in FY26 leading to a nearly +10% rise in our CY26 EPS ests, we maintain our buy rating.” Bank of America: buy, price target to $300 from $240 Analyst Vivek Arya’s new price target suggests the stock could gain another 15% in the coming year. A risk is that Broadcom is trading at the upper end of its historical range and at a premium to market leader Nvidia, he said. “While some might be disappointed AVGO did not update its FY27 $60-$90bn AI TAM, we believe it’s only a matter of time especially as FY27 sell-side AI revenue cons. ests. is still well below $45bn, so plenty of headroom for upgrades,” Arya wrote in a note. “Reit. Buy, a top computing and top-5 sector pick on unique mix of capital appreciation and consistent dividend growth with a blend of recurring (50% software), secular (AI) and cyclical (non-AI) profiles.”
