Update shared on14 Sep 2025
Fair value Increased 1.75%Analysts have raised Broadcom’s price target to $366.50, citing accelerating AI custom silicon growth, robust earnings, a strengthening AI customer base, and strategic leadership stability.
Analyst Commentary
- Bullish analysts cite Broadcom's accelerating AI custom silicon growth, including the recent addition of a fourth major AI customer (likely OpenAI), with expectations for AI revenue to grow 50%-60% in fiscal 2026 and reach $10B+ next year.
- Strong earnings results and upwardly revised guidance, led by robust AI semiconductor and networking revenues, underpin the widespread upward price target revisions.
- Broadcom's leading position in AI ASICs, with key customers such as Google, Meta, and ByteDance, positions it as a clear winner in the AI hardware and networking roadmap.
- CEO Hock Tan’s commitment to remain through 2030 provides additional strategic stability and leadership confidence, further supporting bullish sentiment.
- Ongoing recovery in core semiconductor and infrastructure software segments, coupled with increasing hyperscaler capex and overall AI demand, boosts investor optimism and underlies increased estimates.
What's in the News
- Apple’s introduction of the in-house N1 wireless networking chip for the iPhone 17 lineup signals a further reduction in dependence on Broadcom as a wireless chip supplier (DigiTimes).
- OpenAI, backed by Microsoft, will begin mass production of its own AI chips co-designed with Broadcom next year, aiming to lessen reliance on Nvidia (Financial Times).
- MediaTek secured Meta’s 2nm ASIC order over Broadcom, with mass production targeted for the first half of 2027 (DigiTimes).
- Broadcom and MediaTek remain direct competitors for large-scale, advanced ASIC projects from major tech firms such as Meta (DigiTimes).
- Broadcom’s CEO sold 40,000 shares of common stock valued at $10.7 million in late June 2025 (company filing).
Valuation Changes
Summary of Valuation Changes for Broadcom
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $360.20 to $366.50.
- The Future P/E for Broadcom has risen slightly from 45.83x to 46.93x.
- The Net Profit Margin for Broadcom remained effectively unchanged, moving only marginally from 42.45% to 42.57%.
Disclaimer
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