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Bank Pictet & Cie Europe AG boosted its stake in Broadcom Inc. (NASDAQ:AVGO – Free Report) by 0.9% in the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 356,936 shares of the semiconductor manufacturer’s stock after acquiring an additional 3,127 shares during the period. Broadcom comprises approximately 2.4% of Bank Pictet & Cie Europe AG’s portfolio, making the stock its 10th largest position. Bank Pictet & Cie Europe AG’s holdings in Broadcom were worth $125,352,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors also recently bought and sold shares of AVGO. Cornerstone National Bank & Trust Co boosted its holdings in shares of Broadcom by 27.7% in the third quarter. Cornerstone National Bank & Trust Co now owns 369 shares of the semiconductor manufacturer’s stock valued at $127,000 after acquiring an additional 80 shares in the last quarter. 55 North Private Wealth LLC grew its holdings in Broadcom by 1.1% during the 3rd quarter. 55 North Private Wealth LLC now owns 7,596 shares of the semiconductor manufacturer’s stock valued at $2,668,000 after buying an additional 83 shares during the last quarter. Cypress Capital LLC grew its stake in Broadcom by 1.6% in the 3rd quarter. Cypress Capital LLC now owns 7,286 shares of the semiconductor manufacturer’s stock worth $2,559,000 after acquiring an additional 112 shares during the period. Stewardship Advisors LLC boosted its position in shares of Broadcom by 1.7% in the third quarter. Stewardship Advisors LLC now owns 2,053 shares of the semiconductor manufacturer’s stock worth $721,000 after acquiring an additional 35 shares during the last quarter. Finally, Norway Savings Bank raised its holdings in shares of Broadcom by 11.5% in the 3rd quarter. Norway Savings Bank now owns 5,000 shares of the semiconductor manufacturer’s stock worth $1,756,000 after purchasing an additional 514 shares during the period. 76.43% of the stock is owned by hedge funds and other institutional investors.

Key Broadcom News Here are the key news stories impacting Broadcom this week:

Positive Sentiment: Tigress Financial initiated coverage with a Buy rating and a $600 price target, implying substantial upside and signaling confidence in Broadcom’s AI semiconductor and infrastructure-software opportunities. Tigress Financial Broadcom coverage Positive Sentiment: Broadcom launched Arcot Scam Defense, a real-time fraud-detection feature for card-not-present transactions. Initial financial-institution pilots reportedly produced strong results, offering a potential new growth opportunity for its infrastructure-software business. Broadcom launches Arcot Scam Defense Positive Sentiment: Several analyses remain bullish on Broadcom’s custom AI-chip and networking exposure, describing the company as a potential long-term beneficiary of rising AI revenue and as a relatively resilient play if AI customers face cash-flow pressures. Broadcom long-term stock prediction Neutral Sentiment: Broadcom’s recent earnings exceeded consensus estimates, with revenue growth accelerating sharply year over year. However, the strong results are already being weighed against elevated valuation expectations and broader market conditions. Negative Sentiment: Chip stocks have broadly pulled back amid higher-rate concerns and worries that the massive AI data-center buildout may take longer to generate adequate returns. This sector-wide risk is weighing on AVGO alongside company-specific developments. Chip stocks pullback Negative Sentiment: Technical-focused coverage identifies the $320 area as a critical test. A sustained break below that level could encourage additional selling, while the stock’s position below its moving averages reflects weakened near-term momentum. Broadcom $320 support analysis Wall Street Analyst Weigh In AVGO has been the subject of a number of recent analyst reports. UBS Group lowered shares of Broadcom from a “buy” rating to a “hold” rating in a report on Thursday, September 3rd. Tigress Financial began coverage on shares of Broadcom in a research report on Thursday. They issued a “buy” rating and a $600.00 price target on the stock. BMO Capital Markets lifted their price objective on shares of Broadcom from $455.00 to $575.00 and gave the stock an “outperform” rating in a research report on Thursday, September 3rd. Weiss Ratings upgraded Broadcom from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, October 8th. Finally, JPMorgan Chase & Co. reaffirmed a “buy” rating on shares of Broadcom in a research note on Thursday, September 3rd. One research analyst has rated the stock with a Strong Buy rating, thirty-eight have issued a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $529.17. View Our Latest Research Report on AVGO

Broadcom Stock Down 4.3% AVGO opened at $323.24 on Friday. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.50 and a quick ratio of 2.29. The company has a market capitalization of $1.54 trillion, a PE ratio of 41.28 and a beta of 1.46. Broadcom Inc. has a fifty-two week low of $289.96 and a fifty-two week high of $495.00. The business has a 50-day moving average of $357.48 and a 200-day moving average of $384.69.

Broadcom (NASDAQ:AVGO – Get Free Report) last announced its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, topping the consensus estimate of $3.22 by $0.10. The company had revenue of $29.59 billion for the quarter, compared to analyst estimates of $29.24 billion. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. Broadcom’s quarterly revenue was up 85.5% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.69 EPS. Equities research analysts forecast that Broadcom Inc. will post 10.37 EPS for the current fiscal year.

Broadcom Announces Dividend The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Monday, September 21st were issued a $0.65 dividend. This represents a $2.60 annualized dividend and a yield of 0.8%. The ex-dividend date was Monday, September 21st. Broadcom’s dividend payout ratio (DPR) is 33.21%.

Broadcom Profile (Free Report)

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software products. Its semiconductor solutions support data center, networking, broadband, wireless communications, storage, industrial and other electronic applications.

The company’s semiconductor portfolio includes networking and switching components, custom accelerators, connectivity and wireless devices, broadband equipment, optical products, storage controllers and related infrastructure technologies.

See Also Five stocks we like better than Broadcom Is Texas Instruments Setting Up for Its Next Big Breakout? Pegasystems’ Q3 Miss Exposed the Problem Standing Between AI and Cash Flow Lam Research’s Earnings Beat Wasn’t the Real Story—Its 2027 Outlook Was Tesla’s Flying-Car Hype Hits an Earnings Reality Check Want to see what other hedge funds are holding AVGO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Broadcom Inc. (NASDAQ:AVGO – Free Report).

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CWA Asset Management Group LLC reduced its stake in Broadcom Inc. (NASDAQ:AVGO – Free Report) by 2.2% during the third quarter, according to its most recent filing with the SEC. The fund owned 74,624 shares of the semiconductor manufacturer’s stock after selling 1,675 shares during the quarter. Broadcom accounts for approximately 0.8% of CWA Asset Management Group LLC’s portfolio, making the stock its 22nd largest holding. CWA Asset Management Group LLC’s holdings in Broadcom were worth $26,207,000 as of its most recent SEC filing.

Several other institutional investors also recently added to or reduced their stakes in AVGO. Fullerton Advisors LLC raised its position in Broadcom by 1.3% in the first quarter. Fullerton Advisors LLC now owns 1,989 shares of the semiconductor manufacturer’s stock worth $616,000 after acquiring an additional 25 shares during the period. NORTHSTAR ASSET MANAGEMENT Co grew its position in shares of Broadcom by 0.5% during the 1st quarter. NORTHSTAR ASSET MANAGEMENT Co now owns 5,350 shares of the semiconductor manufacturer’s stock valued at $1,656,000 after acquiring an additional 25 shares during the period. Yukon Wealth Management Inc. grew its position in shares of Broadcom by 1.1% during the 1st quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer’s stock valued at $774,000 after acquiring an additional 26 shares during the period. NerdWallet Wealth Partners LLC grew its position in shares of Broadcom by 2.6% during the 2nd quarter. NerdWallet Wealth Partners LLC now owns 1,057 shares of the semiconductor manufacturer’s stock valued at $399,000 after acquiring an additional 27 shares during the period. Finally, Veery Capital LLC increased its stake in shares of Broadcom by 1.4% during the 2nd quarter. Veery Capital LLC now owns 1,900 shares of the semiconductor manufacturer’s stock worth $718,000 after purchasing an additional 27 shares during the last quarter. Institutional investors own 76.43% of the company’s stock.

Key Stories Impacting Broadcom Here are the key news stories impacting Broadcom this week:

Positive Sentiment: Broadcom launched Arcot Scam Defense, a feature designed to help financial institutions block AI-enhanced social-engineering fraud in card-not-present transactions. The product could strengthen Broadcom’s infrastructure-software portfolio and create additional enterprise demand. Broadcom Launches Arcot Scam Defense to Block Social Engineering Fraud Positive Sentiment: Broadcom’s 10-year agreement with NTT DOCOMO to advance the telecommunications company’s private cloud using VMware Cloud Foundation reinforces the durability of its recurring software revenue and enterprise-cloud strategy. Broadcom to Advance NTT DOCOMO’s Private Cloud with VMware Cloud Foundation Positive Sentiment: Several analyses continue to highlight Broadcom as a leading beneficiary of custom AI-chip and networking demand. One report cited a 236% increase in AI-chip sales, while investors view its combination of custom silicon, AI networking and infrastructure software as a potential alternative to Nvidia. Broadcom Sees AI Chip Sales Up 236% Neutral Sentiment: Commentary comparing Broadcom with Apple and other semiconductor stocks presents AVGO as a long-term AI and infrastructure-software opportunity, but emphasizes that the investment case depends on sustained customer spending and execution. Apple vs. Broadcom: Which Tech Stock Is a Better Buy in 2026? Negative Sentiment: Semiconductor shares have pulled back amid interest-rate concerns, worries that AI infrastructure spending may be excessive, and broader warnings of a possible AI-stock bubble. Broadcom CEO Hock Tan’s comments comparing AI spending with a “casino” and warning about capital constraints have also unsettled some investors. Chip Stocks Have Pulled Back Analysts Set New Price Targets Several equities research analysts have recently issued reports on the stock. JPMorgan Chase & Co. restated a “buy” rating on shares of Broadcom in a research note on Thursday, September 3rd. Lake Street Capital upgraded Broadcom to a “buy” rating in a research note on Thursday, September 3rd. Raymond James Financial reissued an “outperform” rating and set a $475.00 price objective (up from $450.00) on shares of Broadcom in a report on Thursday, September 3rd. The Goldman Sachs Group raised their target price on Broadcom from $525.00 to $540.00 and gave the stock a “buy” rating in a research report on Thursday, September 3rd. Finally, BMO Capital Markets boosted their target price on Broadcom from $455.00 to $575.00 and gave the company an “outperform” rating in a research note on Thursday, September 3rd. One investment analyst has rated the stock with a Strong Buy rating, thirty-seven have issued a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $527.20. Get Our Latest Stock Analysis on Broadcom

Broadcom Stock Up 1.0% Broadcom stock opened at $337.80 on Thursday. Broadcom Inc. has a 1-year low of $289.96 and a 1-year high of $495.00. The firm has a market capitalization of $1.61 trillion, a price-to-earnings ratio of 43.14 and a beta of 1.46. The company has a current ratio of 2.50, a quick ratio of 2.29 and a debt-to-equity ratio of 0.57. The firm has a 50 day simple moving average of $359.37 and a 200 day simple moving average of $384.63.

Broadcom (NASDAQ:AVGO – Get Free Report) last issued its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.22 by $0.10. The business had revenue of $29.59 billion for the quarter, compared to analysts’ expectations of $29.24 billion. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The business’s revenue for the quarter was up 85.5% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.69 EPS. On average, analysts predict that Broadcom Inc. will post 10.37 earnings per share for the current year.

Broadcom Dividend Announcement The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Monday, September 21st were paid a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date was Monday, September 21st. Broadcom’s payout ratio is presently 33.21%.

About Broadcom (Free Report)

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software products. Its semiconductor solutions support data center, networking, broadband, wireless communications, storage, industrial and other electronic applications.

The company’s semiconductor portfolio includes networking and switching components, custom accelerators, connectivity and wireless devices, broadband equipment, optical products, storage controllers and related infrastructure technologies.

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SummaryBroadcom is upgraded from Hold to Buy, with a blended fair value of $405 versus a $334.37 close.Record Q3 results, surging AI semiconductor revenue, and upgraded multi-year AI guidance drive the improved outlook.My base case model conservatively discounts management’s aggressive 2028 AI revenue forecasts, reflecting caution on vendor-financed demand.Risks include seller-funded backlog quality, AI capex durability, and potential margin pressure, but even conservative scenarios support a Buy rating. Sundry Photography/iStock Editorial via Getty Images

Introduction In late July, I started covering Broadcom (AVGO) with a Hold and my rating went against the tide of buy articles. I was cautious given numerous issues that later in September

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

TOKYO, Oct. 19, 2026 (GLOBE NEWSWIRE) -- Broadcom Inc. (NASDAQ: AVGO), a global technology leader that designs, develops, and supplies semiconductor and infrastructure software solutions, today announced that it has signed a 10-year agreement with NTT DOCOMO, INC. (DOCOMO) to continuously advance the private cloud that will underpin the company’s digital services over the next decade. The agreement will enable DOCOMO to continue delivering reliable digital services to its customers amid a rapidly changing business environment, marked by the expanding use of AI and increasingly sophisticated cyberattacks.

Since 2019, VMware, now Broadcom, has worked closely with DOCOMO to build and operate its private cloud with VMware Cloud Foundation (VCF) at its core. Building on this collaboration, the two companies will now align their long-term technology roadmaps to strengthen DOCOMO’s service infrastructure.

This is Broadcom Japan’s first (1) 10-year comprehensive agreement covering licenses, technical assistance and maintenance support for VMware products (2), including VCF.

Through this agreement, Broadcom will combine DOCOMO’s operational expertise in large-scale infrastructure with its technology and engineering resources to further improve the continuity, security and delivery speed of DOCOMO’s service infrastructure.

With VCF at the core, Broadcom will drive technical collaboration and operational excellence across three focus areas:

Continuous Service Availability
Leveraging VCF, DOCOMO will strengthen its ability to rapidly upgrade and maintain systems without service interruptions. Unified management of servers, storage, and networking will enable flexible capacity expansion to support future service growth. In addition, autonomous placement and scaling of system resources based on usage will maintain stable service quality even during traffic spikes. VCF Forte Support, which offers Broadcom’s highest-level service-level objectives (SLOs), will help sustain continuous system operations.

Proactive Security and Resilience
To counter increasingly sophisticated cyberattacks and emerging AI-driven threats, DOCOMO will further strengthen rapid and continuous security measures by leveraging VCF capabilities that enable timely patching, together with predictive anomaly detection. Continuous visibility across the entire system through VCF, combined with AIOps initiatives, will enable early detection of and rapid response to anomalies. Close engagement with dedicated Support Account Managers (SAM) and Technical Account Managers (TAM) will also enable DOCOMO to quickly incorporate the latest technologies and security measures.

Accelerated Service Delivery
By leveraging VMware vSphere Kubernetes Service (VKS), the native VCF Kubernetes runtime, DOCOMO will run virtual machines and containers on a common platform and use development and operations automation to streamline everything from environment provisioning to service delivery. Automating development, testing and release processes will enable new services and features to be rolled out in shorter cycles, allowing DOCOMO to respond quickly to evolving customer needs and market conditions.

Building on this long-term agreement, Broadcom will embark on the evolution of DOCOMO’s service infrastructure into a next-generation platform that will bring together virtual machines, containers and AI.

Leveraging a VCF-based private cloud platform, the two companies will jointly drive the automation and advancement of AI-driven operations that are expected to contribute to further improvements in service quality and delivery speed.

Broadcom will continue to collaborate with DOCOMO to ensure that its service infrastructure evolves through the flexible adoption of new technologies, in anticipation of future shifts in technology and the business environment, such as the expanding use of AI, new AI-driven threats, 6G and IOWN.

Executive Comments

Hiroshi Ishimaru, General Manager, Service Design Department, NTT DOCOMO, INC.
“At DOCOMO, we are enhancing our service infrastructure to ensure the stability and security that allow customers to use our digital services with peace of mind, while enabling it to respond flexibly and quickly to changes in technology and the market.”

“VMware products have long been used across a range of our systems, and through this long-term comprehensive agreement, we will further strengthen our technical collaboration with Broadcom. Going forward, while maintaining the reliable delivery of our existing services, we aim to build a service infrastructure that delivers new value to customers more quickly and reliably, with an eye toward future technological advances such as the expanding use of AI.”

Paul Turner, Chief Product Officer, VMware Cloud Foundation Division, Broadcom
“We are honored to continue to partner with DOCOMO, a company that supports Japan's social infrastructure and digital lifestyles, on a long-term initiative for the next decade.”

“Over the past seven years, we have built a strong technical collaboration, and this agreement takes that relationship further, reflecting our shared commitment to continuously enhancing DOCOMO's service infrastructure over the long term. With VMware Cloud Foundation at the core, Broadcom will provide a private cloud platform that runs virtual machines, containers, and AI workloads on a common foundation. Our engineering teams will work closely with DOCOMO's so the company can continue to deliver secure, reliable digital services quickly.”

About Broadcom
Broadcom Inc. (NASDAQ: AVGO) is a technology leader that designs, develops, and supplies semiconductors and infrastructure software for global organizations’ complex, mission-critical needs. Broadcom combines long-term R&D investment with superb execution to deliver the best technology, at scale. Broadcom is a Delaware corporation headquartered in Palo Alto, CA. For more information, visit www.broadcom.com.

Notes and Company Information

(1)As a 10-year comprehensive agreement in Japan covering licenses, technical assistance and maintenance support for VMware products, as of October 20, 2026.(2)VMware products and related technical assistance and support covered by the agreement include: VMware Cloud Foundation, VMware Avi Load Balancer, VMware vDefend, VMware Tanzu Platform, Support Account Manager (SAM), Technical Account Manager (TAM) and VCF Forte Support.   Media Contacts:

Roger Fortier
VMware Cloud Foundation Division, Broadcom
+1.408.348.1569
[email protected]

Eloy Ontiveros
Broadcom Global Communications
+1.650.427.6145
[email protected]

Ashurst Perkins Coie Trust Co lifted its position in Broadcom Inc. (NASDAQ:AVGO – Free Report) by 21.4% during the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 42,218 shares of the semiconductor manufacturer’s stock after buying an additional 7,435 shares during the quarter. Broadcom makes up approximately 2.4% of Ashurst Perkins Coie Trust Co’s portfolio, making the stock its 13th biggest holding. Ashurst Perkins Coie Trust Co’s holdings in Broadcom were worth $14,827,000 at the end of the most recent reporting period.

A number of other large investors also recently modified their holdings of the company. Networth Advisors LLC raised its holdings in shares of Broadcom by 546.2% in the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer’s stock valued at $26,000 after acquiring an additional 71 shares in the last quarter. Core Capital Management & Research inc. purchased a new position in shares of Broadcom during the second quarter worth about $31,000. Harborfront Financial Group LLC purchased a new position in shares of Broadcom during the second quarter worth about $38,000. Coppell Advisory Solutions LLC purchased a new position in shares of Broadcom during the second quarter worth about $60,000. Finally, IMG Wealth Management Inc. bought a new position in shares of Broadcom in the second quarter worth approximately $64,000. 76.43% of the stock is currently owned by institutional investors.

Broadcom Price Performance AVGO opened at $344.33 on Friday. The stock’s 50 day simple moving average is $366.31 and its 200 day simple moving average is $383.89. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.50 and a quick ratio of 2.29. Broadcom Inc. has a 1 year low of $289.96 and a 1 year high of $495.00. The firm has a market cap of $1.64 trillion, a price-to-earnings ratio of 43.98 and a beta of 1.46.

Broadcom (NASDAQ:AVGO – Get Free Report) last announced its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, topping analysts’ consensus estimates of $3.22 by $0.10. Broadcom had a return on equity of 48.33% and a net margin of 42.94%. The business had revenue of $29.59 billion for the quarter, compared to analysts’ expectations of $29.24 billion. During the same period in the previous year, the firm earned $1.69 EPS. The business’s quarterly revenue was up 85.5% on a year-over-year basis. As a group, analysts predict that Broadcom Inc. will post 10.37 earnings per share for the current year. Broadcom Announces Dividend The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st were issued a $0.65 dividend. The ex-dividend date was Monday, September 21st. This represents a $2.60 annualized dividend and a dividend yield of 0.8%. Broadcom’s dividend payout ratio (DPR) is currently 33.21%.

Key Broadcom News Here are the key news stories impacting Broadcom this week:

Positive Sentiment: Broadcom’s AI business remains a major growth driver. Reports highlight 221% growth in AI chip sales, strong demand for custom accelerators, and hyperscaler interest in alternatives to Nvidia’s higher-cost architecture. Some analysts believe Broadcom could benefit as AI spending broadens beyond Nvidia. Prediction: Broadcom Could Be the AI Winner After Nvidia Positive Sentiment: Bullish coverage points to Broadcom’s combination of high-margin semiconductors, networking products, custom silicon, and recurring infrastructure software revenue. Supporters argue that weaker non-AI segments are masking strong execution and creating a long-term buying opportunity. I’m Simply Not Worried About Broadcom’s Multi-Segment Drag Neutral Sentiment: Comparisons with Nvidia, Applied Materials, Marvell Technology, and SK Hynix emphasize Broadcom’s differentiated exposure to networking and custom AI chips, although SK Hynix recently showed stronger overall revenue momentum. These comparisons reinforce the investment debate rather than introduce a new company-specific catalyst. Broadcom vs. SK Hynix Revenue Trends Negative Sentiment: Tan cautioned that AI investing is becoming “casino”-like and that investors may underestimate how difficult it will be for AI companies to earn returns as spending and financing costs rise. He warned that tighter capital availability could slow AI infrastructure expansion. Broadcom CEO Hock Tan Warning About Casino-Like Investing Negative Sentiment: Investors are also examining potential off-balance-sheet financing and a reported $50 billion debt arrangement, increasing concern about leverage and counterparty risks if AI demand or customer returns weaken. Broadcom Off-Balance-Sheet Financing Risk Negative Sentiment: Apple’s reported cuts to iPhone 18 Pro component orders raise questions about Broadcom’s smartphone-related sales, while the continuing technology sell-off is weighing on high-valuation AI stocks broadly. Apple Cut iPhone 18 Orders Analyst Upgrades and Downgrades AVGO has been the topic of a number of recent analyst reports. Lake Street Capital raised shares of Broadcom to a “buy” rating in a research note on Thursday, September 3rd. Bank of America cut their price target on shares of Broadcom from $530.00 to $460.00 and set a “buy” rating for the company in a research note on Thursday, September 3rd. Wall Street Zen lowered shares of Broadcom from a “strong-buy” rating to a “buy” rating in a report on Saturday, July 18th. DA Davidson set a $350.00 price target on shares of Broadcom and gave the stock a “neutral” rating in a report on Friday, September 4th. Finally, Morgan Stanley restated an “overweight” rating and set a $505.00 price objective (up from $502.00) on shares of Broadcom in a research report on Thursday, September 3rd. One investment analyst has rated the stock with a Strong Buy rating, thirty-seven have given a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $527.20.

View Our Latest Stock Report on Broadcom

About Broadcom (Free Report)

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops, and supplies semiconductor and infrastructure software products. Its semiconductor solutions support wired and wireless communications, data center networking, broadband access, storage, industrial applications, and other markets.

The company’s semiconductor portfolio includes networking and switching products, custom application-specific integrated circuits, wireless connectivity components, radio-frequency devices, optical components, and storage-related solutions.

Further Reading Five stocks we like better than Broadcom ASML Can’t Keep Up With AI Demand—Why That’s a Good Thing Enovix’s 100,000-Battery Drone Order Sets Up a Test of Its Production Plans AMD’s Support Could Help Fermi Stock Overcome Its Biggest Hurdle Beyond the GPU: Credo Paves the Next AI Data Superhighway Want to see what other hedge funds are holding AVGO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Broadcom Inc. (NASDAQ:AVGO – Free Report).

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SummaryBroadcom Inc. maintains a Strong Buy rating, with robust AI revenue growth and a clear path to its $115B 2027 target.AVGO needs only ~12% quarterly AI revenue growth to hit 2027 goals, a marked slowdown from recent quarters, suggesting achievable targets.Networking, comprising ~27% of AI revenue, is poised to grow as fast as custom chips, supporting margins and diversified exposure.Significant lending to AI customers like Anthropic and OpenAI introduces risk, but AVGO's strong cash flow and balance sheet provide a cushion. Sundry Photography/iStock Editorial via Getty Images

Back in September, I argued that Broadcom Inc.'s (AVGO) AI demand story had survived the slowdown scare. But the stock is still about 28% below its record close of about $480 on June 2, 2026.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Nvidia dominates AI compute, but hyperscalers are quietly shifting billions toward a rival chip architecture that costs less than half as much per workload. One semiconductor giant is positioned to capture that spending, and its valuation still hasn't caught up…

Broadcom (NASDAQ:AVGO | AVGO Price Prediction) is turning custom AI chips into the fastest-growing revenue stream in large-cap semiconductors. Based on our proprietary model, the 24/7 Wall St. price target for Broadcom is $425.56 over the next 12 months. That means 19.97% upside from the current $354.73.

24/7 Wall St. Price Target Summary

Metric
Value

Current Price
$354.73

24/7 Wall St. Price Target
$425.56

Upside/Downside
19.97%

Recommendation
BUY

Confidence Level
90%

Broadcom has delivered a 9th consecutive EPS beat, guided AI semiconductor revenue to $21.70B next quarter, and trades at a forward multiple below what its growth rate suggests.

NVIDIA (NASDAQ:NVDA) still owns general-purpose AI compute. Broadcom is building the custom-silicon and Ethernet layer that hyperscalers and AI labs are using to lower their cost per workload, and that is where I see the next leg of AI value creation.

Broadcom Shares Stall While AI Revenue Triples
The stock has fallen 2.07% over the past week and 1.76% over the past month, and it is up just 3.13% year to date. It sits between a 52-week low of $288.95 and a high of $493.28. This week chip stocks slid after a “casino” comment by Broadcom’s chief executive, which added to sector volatility.

Fiscal Q3 revenue of $29.59B beat the $29.44B estimate and rose 85.5% YoY. Non-GAAP EPS of $3.32 exceeded the $3.24 estimate. AI semiconductor revenue reached $16.70B, up 221% YoY.

Why Bulls See $535 and Beyond
The bull case reaches $535.59, which is close to the consensus target. Of the analysts covering Broadcom, 7 rate it Strong Buy, 40 Buy and 3 Hold, with zero Sells.

Management expects fiscal 2027 AI revenue of approximately $115 billion and has line of sight to $230 billion in fiscal 2028. Hock Tan said Broadcom is “very much on target to exceed $30 in earnings per share in fiscal 2028.”

Anthropic is expected to become Broadcom’s largest XPU customer in 2027. Google (NASDAQ:GOOGL), OpenAI and Meta (NASDAQ:META) are scaling custom accelerators that management says cost “less than half the cost” of a GPU.

Risks That Could Cap Broadcom Near $376
The bear case sits at $375.91. Broadcom has only six XPU customers, and deployments depend on customers securing land, power and data center shells. Gross margin fell 210 basis points sequentially to 75%.

That drop reflects the higher memory content in XPUs, and operating margin still hit a record 67.9%. Debt totals $59.6 billion, though Broadcom paid down $5.6 billion last quarter. Residual value guarantees linked to AI lab financing are a potential risk worth tracking.

How Broadcom Compares to NVIDIA and AMD
NVIDIA is the benchmark Broadcom’s XPUs aim to undercut, and it competes directly in AI networking. Its Data Center Networking revenue reached $40.31 billion, up 138%, and the stock trades near 46 times trailing earnings.

AMD (NASDAQ:AMD) competes for the same hyperscaler AI budgets. Its Data Center revenue grew 107%, but it trades at about 224 times trailing earnings.

Company
P/E
Latest Quarter Revenue Growth

Broadcom
19x (forward)
85.5%

NVIDIA
46x (trailing)
105.85%

AMD
224x (trailing)
50.11%

Broadcom grows faster than AMD and trades at a far lower multiple than either peer. Against this group, our 24/7 Wall St. price target looks conservative.

Broadcom Earns a Buy Rating at $355
I rate Broadcom a buy with a 24/7 Wall St. price target of $425.56 and 90% confidence. What tips the scale is the visibility on fiscal 2027 AI revenue, which management says is supported by secured supply.

The bull case strengthens if Broadcom delivers its Q4 AI guide. It weakens if data center power delays push customer deployments into 2028. (The features that showed up in the last generation of monster chip winners are the same ones we cataloged in a free playbook here: The Next Nvidia Playbook.)

Broadcom Price Prediction 2026-2030
Our model projects where Broadcom could trade if current growth trends hold.

Year
24/7 Wall St. Price Target (Base)
Bull Case

2026
$355.25
$358.15

2027
$427.82
$509.87

2028
$491.28
$617.36

2029
$528.88
$735.75

2030
$584.38
$861.88

These estimates rely on Broadcom keeping execution on its XPU roadmap on track. The biggest swing factors are faster gigawatt deployments at Anthropic and OpenAI on the upside and customer concentration on the downside.

Contact [email protected] for any questions or corrections.

Broadcom stock has remained under pressure in the past few months, even as the artificial intelligence (AI) boom has accelerated. It has slumped from a record high of $492 to the current $354, with its market capitalization falling from $2.29 trillion to the current $1.69 trillion. Technicals suggest that the stock may drop further in the near term. 

AVGO stock has dipped since June, even as the company continued doing well amid the ongoing artificial intelligence (AI) boom. This boom has helped it make some big announcements with some of the top players in the sector. 

It reached a 10 GW deal with OpenAI worth about $300 billion. This deal will see it create the new Jalapeno chips that will compete with those made by companies like Nvidia and AMD. 

Broadcom also reached a deal with Google for work on its TPU chips. This partnership is expected to run through 2031. Additionally, it has major partnerships with companies like Anthropic and Meta Platforms.

Broadcom also inked a deal with Apollo and Blackstone targeting about 20 GW of deployments through 2028. It also expanded its business with Apple. In July, it expanded this partnership to 2031 in a deal worth $30 billion. 

These partnerships have made it one of the fastest-growing companies in the industry. Its semiconductor AI revenue jumped by 143% in the second quarter to $10.8 billion. As a result, the consolidated revenue jumped by 48% to $22.2 billion, with its adjusted EBITDA reaching $15.2 billion.

Analysts expect that Broadcom’s business will continue growing. The average estimate is that its quarterly revenue jumped by 93.6% to $34.9 billion, with its annual revenue expected to hit $105.96 billion. This revenue will then hit $173 billion next year.

Analysts are also optimistic about its stock’s performance. Piper Sandler’s David O’Connor upgraded the stock’s target to $460, while Citic Securities hiked from $450 to $525. Citigroup’s Atif Malic hiked the target from $500 to $515, while BNP Paribas increased from $675 to $715. 

A key challenge is that it is highly overvalued, with the forward price-to-earnings ratio sitting at 31, much higher than the sector median of 23. 

AVGO stock chart | Source: TradingView

The daily chart shows that the AVGO stock price has been in a strong sell-off in the past few months. This sell-off moved from a high of $492 in June to the current $354. 

A closer look shows that the stock is about to form a death cross as its 50-day and 200-day Simple Moving Averages (SMA) are nearing a crossover. This pattern often leads to further downside over time.

The stock has dropped below the Supertrend indicator, while the Relative Strength Index (RSI) has moved below the neutral level of 50. It has also formed a horizontal channel, which is part of a bearish flag pattern. 

Therefore, the stock will likely have a bearish breakout, with the next target to watch being the psychological level of $300. This view will be confirmed if it moves below the key support level of $336, its lowest level in September.

SummaryBroadcom remains a buy as its AI semiconductor revenue surges, supported by deep engineering partnerships with Google, OpenAI, and Meta.AVGO's 3.5D XDSiP platform and advanced chip packaging expertise are critical as Moore's Law slows and customers demand ever-larger, more complex silicon.Despite a drop in gross margin to 73–75% due to memory content, operating margins remain robust at 66%, driven by volume and leverage.At $361.54, AVGO trades at 18.7x FY2027 EPS estimates, offering reasonable valuation if AI revenue and earnings growth targets are met. Sundry Photography/iStock Editorial via Getty Images

I last covered Broadcom (AVGO) in July, when the stock was at $398.50. It is now at $361.54, down about 9%. Not a great call so far, although the AI business has grown considerably since then.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Broadcom competes with Nvidia without selling a single GPU to the general market, and that unusual strategy has locked in hyperscaler contracts stretching years into the future. Whether the stock has already priced in that advantage is the question worth…

The 24/7 Wall St. price target for Broadcom (NASDAQ:AVGO | AVGO Price Prediction) is $427.99 over the next 12 months. With the stock at $363.07, that works out to 17.9% upside. I rate it a buy, and my confidence is high.

Metric Value Current Price $363.07 Price Target from 24/7 Wall St. $427.99 Upside 17.9% Recommendation BUY Confidence Level 90% Broadcom’s AI business runs on a different model from Nvidia (NASDAQ:NVDA). Nvidia sells merchant GPUs to everyone.

Broadcom co-designs custom accelerators (XPUs) and the Ethernet networking that connects them for a small group of hyperscalers and frontier labs, under multi-generation contracts. That model trades breadth for visibility, and the visibility now runs well into 2028.

Record AI Revenue, but Shares Sit 26% Below the High The stock gained 5.65% over the past week and is up 5.48% year to date. It sits 26.4% below its 52-week high of $493.28 and 25.7% off its low of $288.95.

The fundamentals have outrun the stock. Fiscal third-quarter revenue rose 85.5% to $29.59 billion, ahead of the $29.44 billion consensus. Non-GAAP EPS of $3.32 exceeded the $3.24 estimate.

AI semiconductor revenue rose 221% to $16.70 billion, and fourth-quarter guidance calls for $21.7 billion in AI sales on total revenue of about $34.8 billion.

Why Bulls See $535 Within Reach Management has repeated fiscal 2027 AI revenue guidance of in excess of $100 billion, and second-quarter AI bookings exceeded $30 billion. The customer roster keeps growing.

It includes a long-term Google (NASDAQ:GOOGL) TPU agreement, 5 gigawatts of computing power for Anthropic beginning in 2027, an OpenAI program targeting 10 gigawatts by 2029, and 3 gigawatts for Meta Platforms (NASDAQ:META) through 2028.

On the June earnings call, Hock Tan said “Demand for XPUs and networking is simply insatiable.” Wall Street’s consensus target stands at $531.31, with 40 Buy and 7 Strong Buy ratings. The bull case is $535.73.

Concentration and Margin Mix Are the Risks Worth Watching A handful of customers drive the AI business, and Tan acknowledged that Google expects “some diversity of sources.” Gross margin was 77.1% in the second quarter, and management guided it toward roughly 74% as lower-margin TPUs ramp.

Management described this as product mix rather than a structural decline, while semiconductor operating margin expanded to 62%. Debt and dependence on outside foundries also add risk. The bear case is $377.61.

Broadcom Trades Cheaper Than Nvidia and AMD Nvidia is the merchant GPU leader that Broadcom’s custom chips compete with directly. Shares trade at about 25x forward earnings, against roughly 19x for Broadcom.

AMD (NASDAQ:AMD), the other merchant accelerator supplier, trades near 40x while growing revenue more slowly than Broadcom.

Company Forward P/E Quarterly Revenue Growth (YoY) Broadcom 19x 85.5% Nvidia 25x 105.9% AMD 40x 50.1% Broadcom carries the lowest multiple of the three. Next to these peers, the 24/7 Wall St. price target looks conservative.

Broadcom Price Prediction 2026-2030 The 24/7 Wall St. price target of $427.99 carries 90% confidence. Multi-year gigawatt commitments priced at a discount to peers support the rating. The outlook improves if the OpenAI and Meta ramps stay on schedule into 2027. Risks grow if Google moves meaningful TPU volume to other suppliers.

Here is where our model projects Broadcom could trade if current growth trends hold.

Year Price Target from 24/7 Wall St. 2026 $379.32 2027 $427.99 2028 $477.17 2029 $531.99 2030 $593.12 The projections rely on Broadcom continuing to execute its custom silicon strategy.

Faster gigawatt deployments could push results higher, while hyperscaler capex cuts could pull them lower. All of that gigawatt expansion still has to be powered, cooled, and networked by someone, and we highlighted seven suppliers riding that wave in a free AI infrastructure report.

Contact [email protected] for any questions or corrections.

In 2016, the Singapore-based chipmaker Avago acquired the U.S. chipmaker Broadcom (AVGO +0.39%) for $37 billion, inheriting its brand. Over the following decade, it relocated its headquarters to the U.S., expanded its infrastructure software business with several major acquisitions, and launched more custom AI chips for hyperscalers.

From fiscal 2016 to fiscal 2025 (which ended last November), Broadcom's revenue grew at a 19% CAGR. Over the past ten years, its stock delivered a total return of 2,580% with reinvested dividends, outperforming the S&P 500's (^GSPC +0.59%) total return of 327%. Let's see what a $5,000 investment in Broadcom might be worth by 2032.

Image source: Getty Images.

What are Broadcom's biggest catalysts? In fiscal 2025, Broadcom generated 58% of its revenue from its semiconductor solutions segment and the remaining 42% from its infrastructure software segment. Here's how those two businesses fared over the past two and a half years.

Growth (YOY)

FY 2024

FY 2025

Q1 2026

Q2 2026

Semiconductor Solutions Revenue

7%

22%

52%

79%

Infrastructure Software Revenue

181%

26%

1%

9%

Total Revenue

44%

24%

29%

48%

Data source: Broadcom. YOY = Year-over-year.

Broadcom's semiconductor business sells a wide range of chips for the mobile device, data center, networking, wireless, storage, and industrial chip markets. But over the past two years, it ramped up its production of custom application-specific integrated circuits (ASICs) for processing AI tasks. When deployed at scale, these custom AI accelerators (XPUs) can process AI inference tasks more cost-efficiently than stand-alone GPUs.

As the AI market expanded, Alphabet's Google, Meta Platforms, OpenAI, Anthropic, and other AI software giants bought more of Broadcom's custom ASICs to curb their dependence on Nvidia's (NVDA -0.52%) GPUs.

That's why its AI chip sales soared 65% to $20 billion, or 31% of its top line, in fiscal 2025. It expects that figure to surge to $115 billion by fiscal 2027. That would represent two-thirds of its projected revenue and easily offset its slower sales of non-AI chips and infrastructure software.

Broadcom also sells high-speed Ethernet switch ASICs and optical interconnect components, which are essential for supporting AI clusters at data centers. Therefore, its soaring sales of custom AI chips will boost its sales of other AI infrastructure products.

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However, Broadcom's infrastructure software business -- which includes CA's enterprise software, VMware's cloud platform, and Symantec's former enterprise security division -- gives it even more ways to lock in its semiconductor customers with bundled services. Its stable growth should also insulate it from a cyclical slowdown in semiconductor sales.

Where will Broadcom's stock be in 2032? Broadcom's business could transform as sales of its custom AI chips soar. From fiscal 2025 to fiscal 2028, analysts expect its revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to grow at CAGRs of 62% and 63%, respectively. Those are stellar growth rates for a stock that trades at 14 times next year's adjusted EBITDA.

According to Market Research Future, the global AI market could expand at a 38.5% CAGR from 2026 to 2035, while the global AI chip market could grow at a 33.7% CAGR from 2025 to 2035. If Broadcom keeps up with those secular trends, its stock could soar even higher.

If Broadcom matches Wall Street's expectations through fiscal 2028, grows its adjusted EBITDA at a 30% CAGR through fiscal 2033, and trades at a more generous 25 times its forward adjusted EBITDA, its stock could rise nearly tenfold by 2032 and turn a $5,000 investment into over $50,000.

That rally would propel Broadcom's market cap to over $17 trillion. By comparison, Nvidia -- the world's most valuable company -- is currently worth $5.6 trillion. That would certainly be a best-case scenario for Broadcom, but its stock could still easily double or triple in value even if its growth cools off over the next six years.

TSMC validates AI demand, but Broadcom must still convert its $21.7 billion quarterly semiconductor guide. Summary

Foundry strength confirms the market—not Broadcom’s individual share.

Broadcom AVGO, the custom AI accelerator and networking-chip supplier, fell about 2.1% to $368.38 at approximately 10:33 a.m. ET on Thursday. Strong foundry sales offered little protection from selling across the AI-chip trade. According to Barron's, TSMC's record sales failed to give the sector a broad lift. Investors want more than another sign that AI demand remains hot.

Broadcom's own hurdle is steep. Management projected $21.7 billion in fourth-quarter AI semiconductor revenue after delivering $16.7 billion in the third quarter, up 221% from a year earlier. That forecast requires roughly 30% sequential growth. It also puts AI chips at more than 62% of the company's projected $34.8 billion quarterly revenue. AI increasingly sets the pace for the whole business.

The valuation graphic puts shares 12.66% below the $421.80 GF Value™ estimate, suggesting a valuation cushion without proving the stock is cheap. TSMC's strength supports the demand backdrop, but its factories serve competing chip designers too. Broadcom must turn customer spending into shipments while protecting profitability and managing dependence on major buyers. The next test is whether it delivers that $21.7 billion AI revenue forecast.

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

Click for the complete disclosure

PALO ALTO, Calif., Oct. 08, 2026 (GLOBE NEWSWIRE) -- Broadcom Inc. (NASDAQ: AVGO), a global technology leader that designs, develops, and supplies semiconductor and infrastructure software solutions, today announced it is set to present its latest innovations in scale-up, scale-out, and scale-across AI networking at the 2026 Open Compute Project (OCP) Global Summit. Running from October 12–15 in San Jose, Broadcom will feature Ethernet switches, NICs, PCIe components and integrated optics to power Open Rack Version 3 (ORV3) solutions for scaling AI infrastructure.

Featured innovations include Tomahawk® 6, Tomahawk Ultra, and Jericho 4 Ethernet switches, the Thor Ultra 800G and Thor 2 400G AI Ethernet NICs, and Broadcom's third-generation TH6-Davisson Co-Packaged Optics (CPO) — a portfolio built to meet the exponential bandwidth demands of frontier AI models as they grow in scale and complexity.

"Together, the OCP Community and Broadcom have a long history of driving computing at massive scale, and this year’s event theme—'Scaling Innovation for the AI Era'—underscores the growing importance of open collaboration. AI infrastructure demands are scaling faster than anything our industry has seen, and Ethernet is the foundation that makes that growth sustainable. With our industry-leading portfolio of networking solutions and new breakthroughs in integrated optics, Broadcom is giving AI labs, hyperscalers and cloud providers the bandwidth and power efficiency they need to scale-up, scale-out, and scale-across next-generation AI clusters,” said Charlie Kawwas, Ph. D., president, Semiconductor Solutions Group, Broadcom.

“The current pace of AI data center infrastructure development depends on an open ecosystem that can support rapid innovation. The OCP Foundation with its unique collaborative model, Chip-to-Grid vision, and large collaborative community is the perfect place to nurture open ecosystems for the rapidly evolving AI data center industry. Broadcom has been a longstanding contributor to OCP, and we appreciate the technologies and contributions they're bringing to this year's Summit that leverage the open collaborations of the OCP Community, from ORV3 rack-based designs to advances in ORW (wide) racks and new wide co-packaged optics, that reflect exactly the kind of collaboration our Community needs to solve the bandwidth and efficiency challenges facing AI data centers at scale,” said George Tchaparian, CEO, Open Compute Project Foundation.

At this year’s summit, Asad Khamisy, Ph. D., senior vice president and general manager, Broadcom’s Core Switching Group, will deliver a keynote titled “Scaling AI Infrastructure Through Open Innovation” on Monday, October 12, 2026, at 5:30 p.m. Pacific Time in the South Hall of the San Jose Convention Center (SJCC). His presentation will present Broadcom’s vision for scaling AI infrastructure, highlighting breakthroughs in open networking, optical interconnects, and modular rack designs for clusters of over 100,000 accelerators. Khamisy will also address challenges in building switch hardware for AI networks and share innovations that deliver greater bandwidth, reliability, and efficiency for distributed AI computing. To learn more about Khamisy’s upcoming keynote, click here to read his blog, "The Future of AI Infrastructure: Why Ethernet and Optical Connectivity Are Redefining Scale-up Networks."

Throughout the conference, Broadcom experts will address the critical technical challenges and breakthroughs in building next-generation AI infrastructure. Featured speaking sessions include:

224G AECs for AI Data Centers: Extending Reach, Enhancing Telemetry, and Redefining Copper Connectivity, Rajesh Annapillai, Broadcom, and Clay Miller, Molex, Monday October 12, 12:00pm-12:20pm | SJCC - Concourse Level - 210AE.Designing the Next AI Fabric: When Compute Meets Optics, Manish Mehta, Broadcom, Tareq Bustami, Celestica, and Binbin Guan, OpenAI, Monday, October 12, 1:15pm-1:35pm | SJCC - Concourse Level - 210CG.Current Activities in the Open Cluster Designs for AI Strategic Initiative, Lowell Lamb, Broadcom, and Loren Staley, Celestica, Tuesday, October 13, 1:25pm-1:40pm | SJCC - Concourse Level - 220B.Using SPDM for PLDM Firmware Updates: Authorization Policy and Measurement Manifest Capabilities, Brett Henning, Broadcom, Patrick Caporale, Lenovo, and Scott Phuong, Microsoft, Tuesday, October 13,4:00pm-4:20pm| SJCC - Lower Level - LL21BC.Enabling AI Networking @ Scale with Multi-path Reliable Connections (MRC), Eric Spada, Broadcom, and Guohan Lu, OpenAI, Wednesday October 14, 9:45am - 10:05am | SJCC - Concourse Level - 220B.Network Configurations for Optical AI Fabrics including MRC and SRv6, Mohammad Hanif, Broadcom, and Arihant Jain, Arista Networks, Wednesday, October 14, 10:10am-10:30am | SJCC - Concourse Level - 220B.SUE-T - An Ethernet transport for Scale-Up Networking, Karen Schramm, Broadcom, and Tom Emmons, Arista Networks, Wednesday, October 14, 1:00pm-1:15pm | SJCC - Concourse Level - 220B.CPO, OCI (OCP Special Focus: Photonics), Rajiv Pancholy, Broadcom, Wednesday, October 14, 3:15pm-3:30pm | SJCC - Concourse Level - 210AE.Standards and Future Technologies (OCP Special Focus: Photonics), Rajiv Pancholy, Broadcom, Nathan Tracy, TE Connectivity, Rang-Chen Yu, TeraHop, Andy Bechtolsheim, Arista Networks, Vlad Kozlov, Lightcounting (Moderator), Wednesday, October 14, 4:40pm-5:00pm| SJCC - Concourse Level - 210AE.Deep Buffers: The Essential Foundation for Scalable AI Training and Inference Infrastructure, Golan Schuzkin, Broadcom, and Hugh Holbrook, Arista Networks, Thursday, October 15, 12:30pm-12:45pm| SJCC - Concourse Level - 210AE.Precision Time for AI Infrastructure: Deploying PTP Boundary Clocks at Scale, Bhaskar Chinni, Broadcom, and Vikram Chandra, Nokia, Thursday, October 15, 12:50pm-1:05pm | SJCC - Lower Level - LL21BC.
At OCP, Broadcom will partner with 15 plus companies to showcase its latest solutions across the show floor, underscoring its leadership in shaping the future of AI infrastructure. Key partner demos on the show floor include:

Accton/Edgecore Networks will feature Tomahawk 6 demos, Expo Hall 3, Booth D1.Alpha Networks will showcase live demos with their Tomahawk 6 liquid cooled solution, Expo Hall 3, Booth D9.Celestica will display Tomahawk 6-Davisson 102.4T CPO and Tomahawk 6 demos, Expo Hall 2, Booth C2.Delta Electronics will showcase Tomahawk 6-Davisson 102.4T CPO, Expo Hall 3, Booth D5.Micas Networks will showcase Tomahawk 6-Davisson 102.4T CPO, Expo Hall 3, Booth E5.
To learn more about these and other technical speaking sessions, joint partner demonstrations, technology showcases, key Broadcom news, and other activities at 2026 OCP Global Summit, please click here.

About Broadcom
Broadcom Inc. (NASDAQ: AVGO) is a technology leader that designs, develops, and supplies semiconductors and infrastructure software for global organizations’ complex, mission-critical needs. Broadcom combines long-term R&D investment with superb execution to deliver the best technology, at scale. Broadcom is a Delaware corporation headquartered in Palo Alto, CA. For more information, go to www.broadcom.com.

Broadcom, the pulse logo, and Connecting Everything are among the trademarks of Broadcom. The term "Broadcom" refers to Broadcom Inc., and/or its subsidiaries. Other trademarks are the property of their respective owners.

Press Contact:
Jon Piazza
Corporate Communications
[email protected]
Telephone: +1 310 498 5254

For years, graphics processing units (GPUs) have been the dominant processor for artificial intelligence (AI). That's because GPUs are great at training AI and helping it perform a wide array of tasks.

But lately, there's been a shift toward custom processors, called application-specific integrated circuits (ASICs). These custom processors can be designed for specific AI models or specific agentic tasks, making them more cost-efficient and faster than using GPUs for all AI tasks.

According to Cathie Wood's Ark Invest, custom processors could account for more than one-third of AI compute by 2030, up from single-digit percentages today. And analysts at Omdia predict custom ASICs will exceed GPU volumes by 2028.

One of the best ways to tap into this rapidly expanding market is by owning shares of Broadcom (AVGO -0.60%). Here's how Broadcom is benefiting from this AI supercycle.

Image source: The Motley Fool.

AI leaders are lining up to buy Broadcom's custom chips Custom AI silicon isn't exactly a new idea. Alphabet's Google has had its own Tensor Processing Units (TPUs) for more than a decade now. But even Google is ramping up its use of the processors, and other tech giants are jumping on board, too.

Alphabet recently signed a multi-year deal for Broadcom to design TPUs that will run and train its Google Gemini frontier AI model. Alphabet is Broadcom's largest customer, and the tech giant's purchase of custom processors accounted for an estimated $13 billion of Broadcom's 2025 sales.

Meta Platforms is another important customer, with Broadcom designing the company's Meta Training and Inference Accelerator (MTIA) chips. AI has become increasingly important for Meta, as the company just launched its popular Muse agent app, which can autonomously shop online for users, book trips, and manage daily tasks. Muse shot to the top of Apple's U.S. App Store last month, indicating that consumers are eager for personal AI agents.

OpenAI jumped on the custom AI processor bandwagon this year by hiring Broadcom to design its Jalapeno processor, which it describes as an "LLM-optimized inference chip" that makes AI faster and more reliable. The first of the new processors will be deployed in data centers by the end of this year, with a ramp-up in 2027 and 2028.

And Anthropic has been a Broadcom customer for at least a couple of years, purchasing custom processors from the company valued at tens of billions of dollars. The two companies recently expanded their relationship with Broadcom, agreeing to lend Anthropic up to $42 billion to expand its artificial intelligence data center infrastructure investments.

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Broadcom's growth is impressive by any metric It's one thing to see a company sign a slew of new deals, but it's even more impressive to see its sales and earnings accelerate as its customers keep coming back.

Broadcom's AI semiconductor revenue rose 221% to $16.7 billion in the most recent quarter, and managers are guiding for AI sales to double in fiscal 2027 to $115 billion. Even more shocking is that CEO Hock Tan has already said that AI revenue will double again in 2028, reaching $230 billion.

Tan also said that his company is on target to exceed $30 in earnings per share in fiscal 2018 -- a sixfold increase from fiscal 2025. With demand for custom processors already ramping up and the broader chip market expanding over the next few years, there's little doubt that Broadcom will continue benefiting from this trend.

The company will hold an estimated 60% of the custom AI processor market in 2027, and it's proven to be a reliable partner for the world's leading tech companies. If Broadcom continues on this path, and there's no reason to believe it won't, owning Broadcom shares is one of the best ways to tap into this accelerating AI supercycle.

SummaryBroadcom is positioned for bullish upside, driven by AI inference demand. We believe there's institutional accumulation in the $342-$381 range.AVGO exhibits accelerating revenue growth, rising cash flow margins, and a strengthening balance sheet, supporting a positive fundamental outlook.The stock trades at 38x TTM unlevered pretax FCF for 49% TTM revenue growth, an unchallenging valuation in the current environment.We rate AVGO at Accumulate between $342-$381, Hold from $381-$495, and see potential for all-time highs in a flat or rising market.This idea was discussed in more depth with members of my private investing community, Growth Investor Pro. Learn More »DISCLAIMER: This note is intended for US recipients only and, in particular, is not directed at, nor intended to be relied upon by any UK recipients. Nothing in this note is intended to be investment advice and nor should it

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of AVGO, SMH, SOXL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Cestrian staff personal accounts hold long positions in, inter alia, AVGO, SMH, SOXL

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Circular financing fears just sent Broadcom shares sliding, but one investor sees the selloff as a gift. Here is why the very risk spooking the market is the same reason he keeps adding to his position.

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I keep adding to my Broadcom (NASDAQ:AVGO | AVGO Price Prediction) position, and the growing worry about circular financing with Anthropic just gave me another chance to do it. Every quarter I look for a reason to stop. Every quarter this company gives me a new reason to keep going.

Why I Keep Coming Back Broadcom co-designs custom AI chips with the few companies building frontier models, then sells them the networking that ties those chips together. That model locks in relationships that run across several chip generations. Management described a long-term Google agreement that could involve “multi-tens of billions of dollars of TPUs annually over the next several years.” That stickiness is what I pay for.

Three Numbers That Keep My Buy Button Active First, growth. Fiscal Q3 revenue hit $29.59 billion, up 85.5% year over year, and AI semiconductor revenue reached $16.70 billion, up 221%. Q4 guidance calls for $34.80 billion in revenue and $21.70 billion in AI revenue. Management projects AI semiconductor revenue of about $115 billion in fiscal 2027 and $230 billion in fiscal 2028.

Second, cash. Free cash flow reached $13.67 billion, equal to 46% of revenue. In that same quarter, Broadcom paid $3.1 billion in dividends and retired $5.6 billion of debt due beyond a year. The $0.65 quarterly dividend got its 15th consecutive annual increase in December 2025. At $362.51, the yield stands near 0.72%. My reason for holding is the growth of that payout, and the starting yield matters less to me.

Third, valuation. Management says Broadcom is “very much on target to exceed $30 in earnings per share in fiscal 2028.” At today’s price, that works out to about 12x fiscal 2028 earnings. The shares rose just 7.93% over the past year while revenue nearly doubled, and over ten years they rose 2574.14%.

Why My Money Goes Here Instead of NVIDIA Most readers reach for NVIDIA (NASDAQ:NVDA) first, and its fiscal Q2 revenue of $96.22 billion explains why. Still, NVIDIA trades near 48x trailing earnings. Its quarterly dividend only rose from $0.01 to $0.25 in May 2026, while Broadcom has raised its payout every year since fiscal 2011. NVIDIA also lists guarantee obligations capped at $108.5 billion for AI cloud and data center partners. Switching to NVIDIA would leave me with financing exposure too, at a higher price.

Risk I Refuse to Ignore The financing concern is real. Broadcom built the AI XPV platform with Apollo and Blackstone to enable more than 20 gigawatts of computing capacity for OpenAI and Anthropic by the end of 2028. The first $35 billion tranche closed in June for Anthropic. Broadcom may provide “modest residual value guarantees,” and management confirmed an analyst’s figure of about $29 billion tied to that first tranche. Management also expects Anthropic to become its largest XPU customer in 2027. If Anthropic stumbles, I feel it twice.

I keep buying because third-party institutions underwrite and fund the assets, and Broadcom supplies no direct financing. Cash rose to $23.98 billion while total liabilities fell 4.21% year over year. Google, Meta and OpenAI also give Broadcom other large customers to lean on.

What Keeps Me Buying From Here Management said “our demand actually exceeds this outlook” and that it has secured supply for fiscal 2027 and 2028. I will keep an eye on the December 9, 2026 earnings report for any new guarantees. The traits that showed up in the earliest stages of the last monster AI chip winner are the same ones we cataloged in a free playbook here. As Hock Tan put it, “Q3 demand was simply hot and we’re just getting started,”, and I plan to continue buying shares in a business still early in its run.

Contact [email protected] for any questions or corrections.

Broadcom's AI revenue is exploding at triple-digit growth rates, yet the stock has barely moved in 2025. Something has to give, and figuring out which way it breaks could make or break your 2028 portfolio.

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Broadcom (NASDAQ:AVGO | AVGO Price Prediction | AVGO Price Prediction) just reported a standout quarter. Fiscal Q3 revenue reached $29.59 billion, up 85.5% YoY. AI semiconductor revenue hit $16.7 billion, up 221%.

CEO Hock Tan said, “Demand for our custom AI accelerators and networking continues to be very strong.” Even so, the stock is up only 0.72% this year.

I see that gap as the central question for investors. This article asks one question: can Broadcom hit $550 per share in 2028?

What’s Holding Broadcom Back Right Now The stock traded at $371.27 on Sept. 2 and has fallen since, down 6.22% over the past month.

Three issues weigh on it: management guided consolidated gross margin down to about 74% due to product mix; the company relies on a small number of large AI customers; and with a beta of 1.46, Broadcom moves more sharply than the market when AI enthusiasm cools off. The stock needs new evidence to move higher.

Wall Street Sees 51.4% Upside. Our Model Says 20.7% The consensus price target sits at $531.85, suggesting 51.4% upside. Analyst ratings stand at 8 Strong Buy, 37 Buy, 4 Hold and 0 Sell. Our model is more conservative.

Its one-year base case lands at $423.79, or 20.67% upside, within a range of $374.67 (bear case) to $532.91 (bull case). The model’s confidence score of 0.9 means it has high conviction in that range.

On this one, I side with the Street. 92% of analysts are bullish, and earnings growth adds 0.03 to the model, which labels it “strong earnings acceleration.” Management also says its visibility now runs “all the way to 2028.”

Here’s What It Takes for Broadcom to Reach $550 Reaching $550 from $351.19 means a rise of 56.6%. At forward EPS of $18.3613, a $550 share price implies a forward P/E of 30x, about 6x below the model’s implied 36x. The rerating needed is a move from today’s multiple to 30x.

The model’s adjustment factor of 1.146 comes from a 1.15 sector momentum multiplier and strong analyst consensus, partly offset by a 50% mega-cap penalty. Earnings growth is contracting the multiple: trailing P/E is 46x, forward P/E is 19x.

Q4 guidance calls for AI revenue of $21.7 billion, up 236%. Management expects fiscal 2027 AI revenue “in excess of $100 billion.” Barron’s reported Anthropic and Broadcom are becoming more intertwined.

CEO Tan: “Demand for XPUs and networking is simply insatiable.” The main risk: Alphabet (NASDAQ:GOOGL) unit Google plans some diversity of sources for chips, potentially limiting the multiple.

Where Broadcom Trades Today vs Its Earnings Power Broadcom trades at 19x forward earnings, a low multiple for a company growing revenue at 85.5%. The stock sits between its 52-week low of $288.95 and high of $493.28.

Over 10 years, it has returned 2,482.49%. At today’s multiple, the market prices in little of the 2027 AI ramp, the core of the optimistic thesis.

Can Broadcom Really Hit $550? My Verdict Hitting $550 requires a 56.6% gain. I consider it reachable. Our 2028 bull case reaches $624.06 by October 2028. Three things must go right:

AI revenue passes $100 billion in fiscal 2027. Gross margin stabilizes. OpenAI and Meta Platforms (NASDAQ:META) deployments ship on schedule. A spending pullback by a major hyperscaler could disrupt the target. Such gains are rare in any single year, and we’ve outlined the path for how Broadcom could reach $550 in 2028. The signs that showed up in past AI-chip winners before their monster runs are the ones we cataloged in a free playbook here.

Contact [email protected] for any questions or corrections.

Neville Rodie & Shaw Inc. increased its position in shares of Broadcom Inc. (NASDAQ:AVGO – Free Report) by 5.1% in the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 53,631 shares of the semiconductor manufacturer’s stock after buying an additional 2,623 shares during the period. Broadcom accounts for approximately 1.3% of Neville Rodie & Shaw Inc.’s holdings, making the stock its 18th biggest position. Neville Rodie & Shaw Inc.’s holdings in Broadcom were worth $18,835,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also bought and sold shares of the company. Cornerstone Advisors LLC acquired a new position in shares of Broadcom in the 2nd quarter worth approximately $92,522,000. Bank of America Corp DE boosted its stake in Broadcom by 1.5% in the 1st quarter. Bank of America Corp DE now owns 58,737,097 shares of the semiconductor manufacturer’s stock valued at $18,179,719,000 after buying an additional 894,564 shares in the last quarter. Clear Harbor Asset Management LLC acquired a new stake in Broadcom in the 2nd quarter valued at $3,302,000. Bartlett & CO. Wealth Management LLC grew its position in Broadcom by 129.3% in the first quarter. Bartlett & CO. Wealth Management LLC now owns 110,048 shares of the semiconductor manufacturer’s stock valued at $34,061,000 after acquiring an additional 62,050 shares during the period. Finally, Violich Capital Management Inc. grew its position in Broadcom by 26.1% in the third quarter. Violich Capital Management Inc. now owns 21,791 shares of the semiconductor manufacturer’s stock valued at $7,653,000 after acquiring an additional 4,511 shares during the period. 76.43% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity In related news, insider Mark Brazeal sold 25,000 shares of Broadcom stock in a transaction dated Friday, July 10th. The stock was sold at an average price of $401.33, for a total value of $10,033,250.00. Following the completion of the sale, the insider directly owned 194,989 shares in the company, valued at $78,254,935.37. This trade represents a 11.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Gayla Delly sold 1,890 shares of Broadcom stock in a transaction dated Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total value of $728,368.20. Following the completion of the sale, the director owned 31,326 shares of the company’s stock, valued at approximately $12,072,413.88. The trade was a 5.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 51,890 shares of company stock worth $20,241,368. 1.90% of the stock is owned by company insiders.

Analyst Ratings Changes Several analysts have recently weighed in on AVGO shares. Citigroup reaffirmed a “buy” rating and set a $515.00 price objective (up from $500.00) on shares of Broadcom in a report on Friday, September 4th. Truist Financial decreased their price target on Broadcom from $550.00 to $520.00 and set a “buy” rating on the stock in a research report on Thursday, September 3rd. Weiss Ratings cut Broadcom from a “buy (b)” rating to a “buy (b-)” rating in a report on Thursday, July 30th. BMO Capital Markets lifted their price objective on Broadcom from $455.00 to $575.00 and gave the company an “outperform” rating in a research report on Thursday, September 3rd. Finally, Erste Group Bank reissued a “hold” rating on shares of Broadcom in a research note on Tuesday, July 7th. One analyst has rated the stock with a Strong Buy rating, thirty-seven have issued a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $527.20. Read Our Latest Research Report on AVGO

Broadcom Price Performance Shares of Broadcom stock traded up $8.16 during midday trading on Monday, reaching $363.30. The company had a trading volume of 9,394,614 shares, compared to its average volume of 25,061,176. The company has a current ratio of 2.50, a quick ratio of 2.29 and a debt-to-equity ratio of 0.57. The stock has a fifty day simple moving average of $372.74 and a 200 day simple moving average of $381.07. Broadcom Inc. has a 1-year low of $289.96 and a 1-year high of $495.00. The company has a market capitalization of $1.73 trillion, a price-to-earnings ratio of 46.40 and a beta of 1.46.

Broadcom (NASDAQ:AVGO – Get Free Report) last posted its quarterly earnings data on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.22 by $0.10. The firm had revenue of $29.59 billion for the quarter, compared to the consensus estimate of $29.24 billion. Broadcom had a return on equity of 48.33% and a net margin of 42.94%.The business’s revenue for the quarter was up 85.5% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.69 EPS. As a group, equities research analysts forecast that Broadcom Inc. will post 10.37 earnings per share for the current year.

Broadcom Dividend Announcement The company also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st were paid a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend was Monday, September 21st. Broadcom’s dividend payout ratio is 33.21%.

More Broadcom News Here are the key news stories impacting Broadcom this week:

Positive Sentiment: Reported Anthropic financing and chip demand: Broadcom reportedly agreed to provide up to $42 billion in financing to Anthropic, potentially supporting purchases of Broadcom’s AI chips and custom silicon. The arrangement has helped fuel optimism about a major customer relationship and future revenue. Broadcom Stock Jumps Following Reported $42 Billion Financing Deal With Anthropic Positive Sentiment: AI revenue momentum remains exceptional: Fiscal third-quarter AI semiconductor revenue reportedly reached $16.7 billion, up 221% year over year, while management’s fourth-quarter guidance calls for $21.7 billion, or 236% growth. Investors view these figures as evidence that AI networking and custom-chip demand is still expanding rapidly. Broadcom Trades Above Its Own Average Multiple While Growth Cools Positive Sentiment: Long-term growth expectations are bullish: Analysts and financial commentators expect Broadcom’s AI revenue could double in both 2027 and 2028, while custom chips are becoming increasingly important to data-center operators. Morgan Stanley also reportedly considers Broadcom relatively protected from current AI power-related supply-chain constraints. Positive Sentiment: Cash generation and scale support shareholder returns: Broadcom’s strong cash flow is viewed as sufficient to support its dividend, while its revenue growth has significantly outpaced Intel over recent quarters. Broadcom vs. Intel: What Revenue Trends Tell Investors Neutral Sentiment: Upcoming industry data may drive volatility: Taiwan Semiconductor’s October 15 results are expected to provide clues about AI-chip demand, manufacturing capacity, and spending trends relevant to Broadcom ahead of its next earnings report. Negative Sentiment: Financing structure raises concerns: The Anthropic arrangement could create “circular financing” risk because Broadcom is reportedly both funding the customer and supplying its chips. Investors may question credit exposure, the quality of demand, and whether purchases remain sustainable without financing support. Broadcom’s Massive $42 Billion Chip-Buying Deal with Anthropic Raises Circular Financing Worries Negative Sentiment: Valuation and concentration risks remain: Broadcom trades at a premium earnings multiple after its AI rally, while a growing reliance on a small number of powerful customers could increase bargaining pressure and make dividend growth more dependent on continued AI spending. About Broadcom (Free Report)

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops, and supplies semiconductor and infrastructure software products. Its semiconductor solutions support wired and wireless communications, data center networking, broadband access, storage, industrial applications, and other markets.

The company’s semiconductor portfolio includes networking and switching products, custom application-specific integrated circuits, wireless connectivity components, radio-frequency devices, optical components, and storage-related solutions.

Featured Articles Five stocks we like better than Broadcom A Manufacturing Surprise Could Be a Big Win for These 2 Companies What a $1 Billion Chip Deal Says About Amazon’s AI Ambitions 3 Stocks Benefiting From AI Demand Just Announced Major Buybacks Insiders Are Selling These 3 Stocks, Should You? Want to see what other hedge funds are holding AVGO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Broadcom Inc. (NASDAQ:AVGO – Free Report).

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Broadcom just agreed to lend billions to the same AI lab it sells chips to, lease equipment to, and may soon own a stake in. That four-way entanglement raises a question shareholders cannot yet answer: whose demand is actually driving…

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Broadcom’s $42 Billion Number Makes the Supplier the Lender Broadcom (NASDAQ:AVGO | AVGO Price Prediction) has agreed to lend Anthropic up to $42 billion, according to the AI lab’s IPO filing, as reported by Reuters on October 1, 2026. The money pays for Anthropic’s infrastructure spending, and much of that spending goes to Broadcom hardware. The debt can also convert into Anthropic shares. Broadcom now plays four roles in this relationship: chip supplier, equipment lessor, lender, and possible future shareholder.

What $42 Billion Shows About Broadcom’s AI Growth The facility could cover about one-third of Anthropic’s $125.2 billion five-year TPU compute commitment. That commitment supports Broadcom’s AI plan. On the September earnings call, management said it expects Anthropic to become its largest XPU customer in 2027 and to hold that spot in 2028. Broadcom is installing one gigawatt of Ironwood chips for Anthropic in 2026. Anthropic is expected to installing five gigawatts of TPU v8i chips in 2027, and Broadcom says it has “clear line of sight” to an extra 10 gigawatts in 2028.

Those installations support Broadcom’s AI revenue outlook of about $115 billion in fiscal 2027 and $230 billion in fiscal 2028. The $42 billion facility tops the $23.975 billion in cash Broadcom held at the end of its third quarter.

The loan adds to earlier financing support. In June, Broadcom set up a financing platform with Apollo Global Management (NYSE:APO) and Blackstone (NYSE:BX). Its first $35 billion tranche closed that month to pay for Anthropic’s one-gigawatt installations. Management said at the time that third parties would insure those assets and that Broadcom would provide no direct financing, though it might offer “modest residual value guarantees.” Broadcom lending directly to Anthropic is a much deeper commitment.

How Broadcom Stock Reacted to the News Barron’s reported on October 1 that Broadcom stock rose as the two companies became more closely tied. On the next trading day, October 2, shares gained 3.35%, from $343.64 to $355.14. CNBC listed Broadcom among that day’s biggest noon movers.

Over a longer stretch, the stock has gone almost nowhere. Shares changed -0.39% from September 3 through October 2, and they remain well below the 52-week high of $493.28.

Bear Case: Broadcom Is Financing Its Own Demand Broadcom’s operating results are strong. Third-quarter revenue reached $29.59 billion, up 85.5% from a year earlier, and free cash flow was $13.665 billion. The concern is how much of the future revenue depends on Broadcom’s own credit.

Anthropic’s filing flags the conflict. Anthropic itself warns that Broadcom’s two roles as supplier and lender create “potential conflicts of interest” involving pricing and hardware decisions. Default terms work against both sides. Anthropic put cash into a restricted account for Broadcom’s benefit in April 2026 and may have to add more. If Anthropic misses payments or other obligations, much of what it owes on its leases could come due at once, and its access to the loan could be limited at the same time. Exposure is hard to measure. On the call, management would not give a maximum figure for future guarantees. It said future deals would have “unique features” tailored to each lab. An analyst noted the first tranche carried maximum exposure of about $29 billion. The customer list is short. Broadcom has only six XPU customers, and its filings list customer concentration and “significant indebtedness” as risks. Gross fixed-rate debt stands at $59.6 billion. Reuters described the deal as part of a broader industry pattern, comparing it with NVIDIA (NASDAQ:NVDA) using its balance sheet to support chip sales. Shareholders end up carrying credit risk tied to a single AI lab, while the stock still trades at 45x trailing earnings.

Bottom Line: Anthropic’s IPO Is the Key Test The $42 billion figure shows how much of Broadcom’s path to $230 billion in fiscal 2028 AI revenue depends on one customer that Broadcom is also helping to pay for. The next major event is Anthropic’s IPO. Management said the listing could change Anthropic’s credit profile, and it would also show what Broadcom’s possible equity stake is worth. Before that, Broadcom has guided fourth-quarter revenue to about $34.80 billion and AI semiconductor revenue to $21.70 billion. Long-term holders will need to judge whether that growth comes from customers’ own spending or from Broadcom’s lending.

Contact [email protected] for any questions or corrections.

It has been about a month since the last earnings report for Broadcom Inc. (AVGO - Free Report) . Shares have lost about 3.8% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Broadcom Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

AVGO Q3 Earnings Beat Estimates, Revenues Rise on Strong AI DemandBroadcom reported third-quarter fiscal 2026 non-GAAP earnings of $3.32 per share, up 96.4% year over year and 3.11% above the Zacks Consensus Estimate.

Revenues surged 85.5% year over year to $29.59 billion and beat the consensus mark by 0.41%. Strong custom AI accelerator and networking demand drove the quarterly results. AI semiconductor revenues jumped 221% year over year to $16.7 billion.

AVGO’s AI Semiconductor Growth AcceleratesAI semiconductor revenues represented 56% of total revenues. XPU shipments increased more than 3.5 times year over year and accounted for 73% of AI revenues, while AI networking revenues rose more than 2.5 times.

Broadcom shipped Ironwood TPU v7 in high volume to Anthropic and Google, began production shipments of Google’s next-generation TPU v8i and shipped OpenAI’s first-generation Jalapeno custom accelerator. AVGO expects Meta’s MTIA accelerator to enter production shipments in the fourth quarter.

Semiconductor Solutions revenues surged 127% year over year to a record $20.84 billion and represented 70% of total revenues. Non-AI semiconductor revenues were $4.2 billion, up 5% year over year and flat sequentially.

The segment's operating margin rose 440 basis points (bps) year over year to 61% as revenue growth outpaced operating expense growth. Broadcom continues to invest in research and development while expanding capacity for substrates and optical components to support semiconductor demand.

AVGO's Software Business Extends GrowthInfrastructure Software revenues increased 29% year over year to $8.75 billion and contributed 30% of total revenues. Annualized recurring revenue (ARR) grew 15% year over year.

Software operating margin expanded 650 bps year over year to roughly 84%.

Broadcom also introduced VMware Private AI Cloud, aimed at letting enterprises run AI alongside existing applications while maintaining security, compliance and control over data.

Broadcom Expands Operating ProfitabilityNon-GAAP gross margin was $22.19 billion, translating to a 75% gross margin. The margin declined 210 bps sequentially as AI semiconductor revenues became a larger part of the sales mix.

Non-GAAP operating expenses were $2.1 billion compared with $2.04 billion a year earlier.

Non-GAAP operating income increased 92% year over year to $20.1 billion, while the operating margin reached 67.9%, reflecting operating leverage from the sharp revenue increase.

AVGO Generates Record Free Cash FlowThe company ended the quarter with $24 billion in cash and cash equivalents.

Broadcom generated $14.20 billion in cash from operations and spent $532 million on capital expenditures. Free cash flow reached a record $13.67 billion, equal to 46% of revenues.

AVGO paid $3.1 billion in dividends and reduced long-term debt by $5.6 billion during the quarter. The board also approved a quarterly dividend of 65 cents per share.

Broadcom Guides for Stronger Q4 AI GrowthFor the fourth quarter of fiscal 2026, Broadcom expects revenues of approximately $34.8 billion, representing 93% year-over-year growth.

Semiconductor revenues are projected at about $26.1 billion, including $21.7 billion of AI semiconductor revenues, up 236%.

Infrastructure Software revenues are expected at roughly $8.7 billion. Broadcom forecasts a non-GAAP operating margin of about 66% and a gross margin of approximately 73% as the mix shifts further toward XPUs with higher memory content.

AVGO Raises Its Fiscal 2026 AI Revenue ViewBroadcom now expects fiscal 2026 AI semiconductor revenues of $58 billion, up 186% year over year and above its prior $56 billion outlook. The company has secured supply to support approximately $115 billion of AI semiconductor revenues in fiscal 2027.

AVGO also sees fiscal 2028 AI semiconductor revenues reaching $230 billion. The company said demand exceeds its fiscal 2027 outlook, while deployment timing depends on factors including data-center readiness, leading-edge silicon, substrates and memory supply.

How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.

VGM ScoresAt this time, Broadcom Inc. has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock has a score of F on the value side, putting it in the lowest quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Broadcom Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerBroadcom Inc. belongs to the Zacks Electronics - Semiconductors industry. Another stock from the same industry, Marvell Technology (MRVL - Free Report) , has gained 28.4% over the past month. More than a month has passed since the company reported results for the quarter ended July 2026.

Marvell reported revenues of $2.74 billion in the last reported quarter, representing a year-over-year change of +36.5%. EPS of $0.94 for the same period compares with $0.67 a year ago.

For the current quarter, Marvell is expected to post earnings of $1.10 per share, indicating a change of +44.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -0% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Marvell. Also, the stock has a VGM Score of F.

Only a handful of companies have benefited more from the current artificial intelligence (AI) boom than Broadcom (AVGO -0.76%). Shares of the semiconductor giant are up 330% in the past three years, and Broadcom now sits as the world's ninth-most valuable company, with a market capitalization of $1.68 trillion (as of Sept. 28).

Broadcom has made plenty of millionaires through the years, but after its current run-up, has that ship sailed? If you have time on your side, I don't believe so.

Image source: Getty Images.

The math behind reaching $1 million from scratch Whether a stock is a millionaire maker depends largely on two things: how much you have to invest and how long you have to invest. If you have $500,000 to invest at once, reaching $1 million is much easier than if you needed $25,000 to grow 40-fold. The same goes for time. If you're trying to go from scratch to $1 million in a decade, you'll need much higher returns than someone with a 20-year horizon.

Investors are more likely to have time than a six-figure lump sum, so for our example, we'll assume a 20-year horizon. Here are different investment amounts and average annual return combinations that it would take to reach a million if you're starting from scratch:

Annual Investment (Monthly)Average Annual Returns$3,000 ($250)24.8%$6,000 ($500)19.1%$9,000 ($750)15.7%$12,000 ($1,000)13.3%$18,000 ($1,500)9.8% Data source: Table by author.

If you can invest $750 to $1,500 in Broadcom monthly, I see it as a millionaire maker. If you're starting from scratch and trying with just $250 monthly, it's a bit more far-fetched to happen in 20 years.

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Riding a high, but built to last Broadcom's recent success is mostly due to its role in the AI ecosystem, supplying custom AI chips and networking equipment. In the third quarter (Q3), semiconductor revenue from AI jumped 221% year over year to $16.7 billion. In Q4, it expects it to jump 236% year over year to $21.7 billion. This continues an impressive run, with Broadcom's revenue and net income up 218% and 271%, respectively, over the past three years.

AVGO Revenue (Quarterly) data by YCharts

The current AI boom has Broadcom in a great place, but if you're investing with seven figures in mind, the business needs to be built to last. In Broadcom's case, it has done a good job building a hardware and software ecosystem that keeps business steady beyond the current hype.

AI aside, Broadcom's chips and wireless parts are used in everything from smartphones to broadband equipment to smart TVs. Right now, it has high customer concentration, with AI hyperscalers (companies that own major data centers) spending hundreds of billions to build out their data centers, but Broadcom's business is a huge part of the overall tech infrastructure.

Trading at 30 times its projected earnings over the next 12 months, Broadcom's stock is expensive. It's much cheaper than the 41 it traded at in June but still expensive enough that investors should be aware the stock could be vulnerable to a pullback. Still, if you're in it for the long haul, this shouldn't deter you.

Broadcom Today

$353.67 -1.43 (-0.40%)

As of 03:04 PM Eastern

This is a fair market value price provided by Massive. Learn more.

$289.96▼

$495.000.74%

45.16

$527.20

Semiconductor giant Broadcom NASDAQ: AVGO has become one of the top breadwinners in custom silicon, positioning itself as NVIDIA’s NASDAQ: NVDA key competitor in AI chips. However, Broadcom’s XPU customer base is undergoing a very significant shift. Alphabet NASDAQ: GOOGL has long been Broadcom’s largest XPU customer, but if all goes according to plan, that will not be the case in 2027. Broadcom has explicitly said that Anthropic is on track to become its largest customer next year and sustain that position in 2028.

However, Anthropic has a problem that Alphabet does not; it is just now starting to generate profits. This raises questions about the company’s ability to actually pay Broadcom when the bill comes due. In this context, investors just received a critical piece of information to analyze: Anthropic’s confidential IPO prospectus. Diving into the details helps provide a better sense of Anthropic’s ability to make good on its commitment to Broadcom.

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Anthropic’s IPO Prospectus and the $161 Billion Broadcom CommitmentAccording to a confidential IPO prospectus seen by Reuters, Anthropic has $161.2 billion in Broadcom-related equipment lease obligations. These obligations are non-cancelable except in the case of a default. While this provides significant visibility for Broadcom, it doesn’t guarantee payment. If Anthropic faces severe funding difficulties, it could stop making lease payments, and Broadcom could resell the related AI racks. Additionally, its commitments toward Broadcom are not the only ones to consider. The company also has overall cloud, computing, and infrastructure obligations of $518 billion that it needs to fund.

In 2025, Anthropic’s revenue grew 12-fold to $4.6 billion. However, its operating loss more than doubled from $2.98 billion in 2024 to $8.06 billion in 2025. Additionally, the report notes that Anthropic’s cash, cash equivalents, and short-term investments as of the end of 2025 were just $20.28 billion. However, the company also raised $65 billion in a May funding round, which could place its current cash balance much higher than $20.28 billion. Nonetheless, its cash would still be far below its spending commitments.

Other reports indicate that Anthropic’s annual revenue run rate has increased by seven times in 2026 to around $65 billion. Additionally, the company’s adjusted operating profit in Q2 was reportedly just $559 million, or a 5.1% margin.

This makes it evident that the company cannot pay for its commitments based on its current operating profits. In turn, it will need to draw on other funding sources to fulfill these obligations.

Anthropic’s Funding Sources: IPO Proceeds and the AI XPV PlatformThere are several key levers Anthropic can pull to fund its huge AI infrastructure commitments. This includes the capital raise expected from its IPO. Anthropic is reportedly targeting a $2 trillion valuation and seeks to raise up to $100 billion in cash. Clearly, this would contribute significantly to funding its $518 billion in commitments, but a massive gap would still exist.

This makes the AI XPV Platform, which Broadcom announced in partnership with Blackstone NYSE: BX and Apollo Global Management NYSE: APO, critical to bridging the gap as Anthropic pursues longer-term profitability. The firms have already launched the initial $35 billion tranche of this vehicle, which will support an over-1-GW deployment.

Under this agreement, an Apollo-managed investment fund pays Broadcom for the chips as Anthropic deploys them, and then receives payments from Anthropic over time as it leases the racks. Broadcom also provides a backstop where, if Anthropic doesn’t pay, it pays Apollo’s investors a portion of the difference. That backstop is considerable, at a maximum of $29 billion for the first tranche. Broadcom expects Anthropic to deploy 15 GW of its chips in 2027 and 2028 combined, implying that the total funding required will be many times higher than the initial $35 billion.

Critically, the initial lease has a five-year term. This gives Anthropic a long runway to grow and improve its profitability in order to make the necessary payments. This is ultimately what the success of the deal rests on. The firm projects revenue of $190 billion to $200 billion in 2028, which could lead to sizable profits if margin expansion progresses.

Anthropic’s IPO: A Key Broadcom Watch Item99th Percentile

Moderate Buy

49.2% Upside

Healthy

Strong

0.78 Selling Shares

68.53%

See Full Analysis

Broadcom expects Anthropic to become its largest XPU customer, but the company has over $500 billion in spending commitments.

Anthropic is experiencing extremely rapid growth and has reportedly nudged its way into adjusted operating profitability, putting it on a solid trajectory.

However, Anthropic still has a long way to go to close the gap between its commitments and its cash flow.

In turn, with respect to Broadcom’s outlook, it will be critical to monitor Anthropic’s financials, which will become much easier to monitor and verify after its IPO.

Reports indicate that Anthropic’s IPO could take place after the November mid-term elections.

Should You Invest $1,000 in Broadcom Right Now?Before you consider Broadcom, you'll want to hear this.

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Broadcom (AVGO +0.70%) stock sits near $350 as of this writing, about 29% under its 52-week high of $495. Much of that drop came the day after the chip designer's June 3 earnings report. Shares fell about 13% that session as investors reacted to CEO Hock Tan's decision not to lift the company's artificial intelligence (AI) chip forecast.

But the forecast has moved since then, and it moved up.

The company's profits have risen, too. Broadcom's non-GAAP (adjusted) earnings per share over the last four quarters are about 43% higher than in fiscal 2025. But the stock is back to about where it ended 2025.

Put another way, investors are paying the same price for a far more profitable company.

Sure, the market does have one legitimate worry, which is how few customers the forecast rests on. But I think the discount has gone further than that risk justifies.

Image source: The Motley Fool.

The forecast went up, not downIn June, Tan said Broadcom's AI chip sales would hit around $56 billion in fiscal 2026 before clearing $100 billion the year after.

With the company's Sept. 2 earnings report, both numbers rose. Broadcom now expects AI sales of $58 billion this fiscal year and around $115 billion for fiscal 2027, a figure Tan said is backed by supply the company has already locked in. He added a new target, too: $230 billion for fiscal 2028.

Showing how fast the business is growing, Broadcom's AI chip sales hit $16.7 billion over the three months ended Aug. 2 (its fiscal third quarter of 2026), up 221% from a year earlier. That growth rate has sped up every quarter this fiscal year. Growth was 106% in the fiscal first quarter, then 143% in the second. Management sees $21.7 billion for fiscal Q4, up 236%. And profit is speeding up right along with sales. Adjusted earnings per share surged 96% over the year-ago quarter, up from gains of 54% and 28% in the two quarters before it.

Tan also said on the earnings call that Broadcom is on track to clear $30 in earnings per share in fiscal 2028.

Cheaper by almost halfAt its record close in early June, Broadcom's stock was valued at about 66 times its adjusted earnings per share over the prior four quarters. At roughly $350, the stock trades at about 36 times those adjusted earnings.

Broadcom spent most of the last two years trading between about 40 and 55 times its adjusted earnings. It's been this cheap by that measure just briefly, mainly in the spring of 2025.

Measured against analysts' profit estimates for fiscal 2027, the price comes out to around 18 times earnings. And the price is below 12 times earnings if Broadcom reaches the $30-plus in earnings per share Tan is targeting for fiscal 2028. At that price, investors seem to be paying as if a good part of the forecast might not come in on time.

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Is the customer list too short?The worry I take most seriously is concentration, and it's rising. Broadcom estimates its top five end customers accounted for around 55% of revenue in fiscal Q3, up from about 45% in fiscal Q2 and about 40% a year before.

Tan counts six custom-chip customers, and he expects Anthropic to become the biggest of them in 2027. That's probably why Broadcom shares lost around 5% on Sept. 14, after Anthropic CEO Dario Amodei put out an essay arguing for slower AI model development. Tan told CNBC that day that the debate hadn't changed his fiscal 2027 and 2028 targets.

For two of the six, Anthropic and OpenAI, Broadcom created a financing platform with Apollo and Blackstone to fund their deployments. It has agreed to backstop up to around $29 billion of one customer's lease payments, and it may provide residual value guarantees.

Yes, if one of these labs struggles to fund its build-out, a big part of fiscal 2027 and 2028 revenue might slip. But Tan said the other four customers are financially solid enough to fund their own deployments.

Ultimately, given how short the customer list is, I see why investors would pay less for Broadcom than they did at the June peak. But I don't think that justifies paying about the same price as at the end of 2025 for a business whose adjusted earnings per share are about 43% higher.

Is Broadcom stock a buy 29% below its high? I think it is. With this much of the forecast resting on a few customers, though, I'd consider buying gradually rather than all at once.

Chinese authorities are examining the use of Broadcom’s (AVGO.O) hardware in state-backed data centres as ​part of a drive to boost domestic producers ‌and reduce reliance on foreign AI infrastructure, the Financial Times reported Wednesday, citing people familiar with the matter.

Amid rivalry with the US, ​China has sharpened its focus on technological self-sufficiency and ​supply-chain resilience and provided particular support for smaller ⁠specialised companies it calls little giants.

The State-owned Assets Supervision ​and Administration Commission (SASAC), which oversees state-owned enterprises, has spent recent ​weeks surveying how extensively Broadcom's switches are deployed across state-controlled data centres, the report said.

Reuters could not immediately verify the report. Broadcom ​and SASAC could not be immediately reached for comment ​outside regular business hours.

The survey found that Broadcom switches could account ‌for ⁠as much as 90% of the equipment in use, the report added.

Based on those preliminary findings, SASAC may issue informal guidance directing state-run data centres to scale back their ​use of ​Broadcom switches ⁠as part of Beijing's "domestic chips for domestic use" campaign — an effort to expand adoption of ​Chinese-made semiconductors and AI technology across the ​public ⁠sector, the newspaper reported.

Broadcom, along with Nvidia (NVDA.O) and China's Huawei, sells high-end switches within the country. Although Nvidia products have already ⁠been ​barred from state-backed data centres, Broadcom's ​switches remain widely present in these facilities, the report added.

Broadcom just posted its ninth straight earnings beat while AI revenue exploded triple digits year-over-year, yet the stock has barely moved in 2026. Something has to give, and our model has a strong opinion on which direction.

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Custom AI silicon has moved from a side business to the largest single growth engine at any US chip company outside NVIDIA. Yet Broadcom (NASDAQ:AVGO | AVGO Price Prediction) shares have drifted sideways for most of 2026, which is exactly the setup our proprietary model looks for.

Broadcom trades at $357.61 as of the September 18, 2026 close. Our 24/7 Wall St. price target for Broadcom is $426.10, an implied upside of 19.15% over the next twelve months. Our recommendation is buy, and our model confidence sits at 90%, which we classify as high.

24/7 Wall St. Price Target Summary Metric Value Current Price $357.61 24/7 Wall St. Price Target $426.10 Upside 19.15% Recommendation BUY Confidence Level 90% An AI Story the Chart Isn’t Telling Broadcom is up just 3.71% year-to-date and 4.31% over the past year, with shares down 1.34% in the last month. That is a striking disconnect from the underlying business.

Fiscal Q3 2026, reported September 2, 2026, delivered revenue of $29.59 billion, up 85.5% year-over-year, with non-GAAP EPS of $3.32, the ninth straight beat. AI semiconductor revenue reached $16.70 billion, up 221% year-over-year, and management guided Q4 AI revenue to $21.7 billion, up 236%. CEO Hock Tan has publicly targeted exceeding $100 billion in AI sales by 2027.

Why Bulls See a Breakout Ahead The bull case rests on customer roster strength. On the Q2 fiscal 2026 call, Tan disclosed a Meta partnership to deploy 3 gigawatts through the end of 2028, an OpenAI commitment of 1.3 gigawatts in 2027 as part of a broader 10 gigawatts by 2029 agreement, and $6 billion in additional purchase orders from two unnamed customers.

Tan stated, “Demand for XPUs and networking is simply insatiable.” Consensus analyst target of $531.85 implies 48% upside. Our bull-case scenario projects $534.01 within twelve months if AI bookings accelerate.

Risks Worth Watching The bear thesis centers on customer concentration. Broadcom has flagged concentration in a limited number of hyperscale AI customers as a primary risk. Any capex reset from Google, Meta, or OpenAI would flow directly through. A forward P/E of 19 holds only if $14.64 forward EPS sustains.

Gross margin is expected to compress toward 74% as AI silicon becomes a larger mix. CFO Kirsten Spears countered that “Structurally, the semiconductor margins remains very stable and very solid,” attributing dilution to mix rather than pricing. Our bear-case one-year price sits at $376.43, still above current levels.

How Broadcom Compares to NVIDIA and Marvell NVIDIA (NASDAQ:NVDA) closed at $222.27 with consensus fiscal 2027 EPS of $9.31, putting its forward P/E near 24. Broadcom’s forward P/E of 19 is a real discount to the merchant-GPU leader, validating our conservative price target.

Marvell Technology (NASDAQ:MRVL) is the closest custom-silicon and AI networking pure-play. It closed at $244.25, up 1.45% on the same session Broadcom rose 2.97%. Marvell competes for the same hyperscaler ASIC sockets, which shows AVGO faces credible competition in AI while Broadcom’s scale advantage justifies its premium.

Broadcom Price Prediction 2026-2030 Our $426.10 target and buy rating reflect a stock whose fundamentals have outrun price action.

The bull case holds if Tan’s $100 billion AI target by 2027 is credible. The bear case gains ground if hyperscaler capex plans pull back in 2027. Bookings visibility running to 2028 is the tie-breaker.

Year 24/7 Wall St. Price Target 2026 $374 2027 $428 2028 $476 2029 $524 2030 $591 These projections assume Broadcom continues executing its custom-silicon roadmap with existing hyperscale customers. Significant upside or downside could result from either an accelerated OpenAI ramp or a broad hyperscaler capex pause.

Contact [email protected] for any questions or corrections.