Benchmark Maintains Buy on Broadcom, $255 Price Target

Benchmark analyst Cody Acree reiterated a Buy rating and $255 price target on Broadcom Limited (NASDAQ: AVGO).

“On a solid beat and raise performance, highlighted by the company’s strong AI results, Broadcom’s shares are up 13% pre-market, allaying many of the market’s concerns following Marvell’s more modest in-line report.

The company delivered 10% sequential and 77% annual growth in its AI revenue, reaching $4.1 billion in 1Q25, well above Broadcom’s original target of $3.8 billion, with much of its AI strength said to have been driven by its networking business, although XPU revenue also contributed to growth.

With expected continue growth in its AI business, we believe Broadcom is extremely well positioned to capitalize on what we expect to be improving industry fundamentals over the intermediate term and is uniquely situated to reap the benefits of the macro industry-wide adoption of AI.

We are particularly encouraged by the company’s increasing AI visibility, which now looks to extend for at least the next few years, as its current previously announced hyperscale customers of Google and Meta, look to have been joined by ByteDance, and with each of these planning to deploy up to a million XPU clusters across a single fabric, Broadcom believes the combination of just these three customers’, multi-year, multi-generational engagements represent an estimated fiscal ‘27 SAM of $60 – $90 billion across both its networking and XPU businesses.”

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