Update shared on04 Oct 2025
Fair value Increased 1.05%Broadcom's analyst price target has been raised by analysts from $366.50 to $370.36, reflecting increased confidence in the company's growing AI opportunities and anticipated revenue expansion.
Analyst Commentary
Recent analyst commentary on Broadcom reflects heightened interest and debate surrounding the company's prospects amid rapidly evolving dynamics in artificial intelligence, custom silicon, and U.S.-based manufacturing. Analysts have highlighted several optimistic factors while also pointing to risks that could affect future performance.
Bullish Takeaways- Bullish analysts continue to raise price targets, with recent updates reflecting confidence in Broadcom's AI portfolio expansion and long-term growth potential.
- Multiple commentaries note that Broadcom's addition of a fourth AI custom silicon customer and its increased 2026 AI revenue outlook indicate the company’s capacity for sustained double-digit growth.
- Broadcom’s strength in custom ASICs and networking for hyperscalers is seen as positioning the company as a market leader. Estimates have been revised upward on the back of strong capex demand and product execution.
- Positive earnings surprises and upward guidance for future quarters support the view that execution in both semiconductor and infrastructure software segments remains robust. This is strengthening the company’s valuation case.
- Bearish analysts highlight the competitive risks posed by large-scale industry pacts, such as Nvidia's partnership with OpenAI, which may challenge Broadcom’s AI market share and future growth trajectory.
- Shifting regulatory policies, including potential manufacturing or trade restrictions, introduce uncertainties that may affect Broadcom’s supply chain and customer demand.
- Muted capital returns in the most recent quarter have prompted some observers to call for more aggressive shareholder-focused actions in the quarters ahead.
- Adjustments to peers' growth projections based on Broadcom’s acceleration in AI-related products could create volatility in end-market demand, which poses execution risks.
What's in the News
- Apple has introduced its proprietary N1 wireless networking chip across the entire iPhone 17 lineup. This move reduces dependence on external suppliers such as Broadcom. (DigiTimes)
- OpenAI, backed by Microsoft, will begin mass production of its own artificial intelligence chip, co-designed with Broadcom, as an alternative to Nvidia. (Financial Times)
- MediaTek has secured Meta's new 2nm ASIC order and outperformed Broadcom in the latest round of competition for Meta's AI hardware projects. (DigiTimes)
Valuation Changes
- Consensus Analyst Price Target has risen slightly, moving from $366.50 to $370.36 per share.
- Discount Rate increased from 10.12% to 10.25%, indicating a marginal rise in perceived risk or market expectations.
- Revenue Growth forecast increased from 25.89% to 26.63%, reflecting enhanced optimism about future sales expansion.
- Net Profit Margin edged up from 42.57% to 42.78%, suggesting stronger anticipated profitability.
- Future P/E Ratio fell modestly from 46.93x to 46.02x, implying a slight decrease in expected future earnings multiples.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.