Deutsche Bank Raises Broadcom Price Target to $270

Deutsche Bank analyst Ross Seymore raised the price target on Broadcom Limited (NASDAQ: AVGO) to $270 (from $205) while maintaining a Buy rating.

“AVGO’s report/guide were largely in-line with expectations, with AI delivering upside, software steady and non-AI semis seeing a slower recovery.

The lack of a cyclical recovery in non-AI is likely to remain a headwind into F4Q, but we expect investors to more eagerly focus on the growth trajectory in AVGO’s AI business (~30% of revs), with F3Q guidance for +16% q/q growth and, more importantly, FY26 now guided to grow at the same rate as FY25, implying ~+60% range (vs DBe +30% prior).

This confidence is coming from AVGO seeing greater demand from its 3 primary XPU customers ramping in both training and increasingly in inference, with the consistent 4 “prospects” unlikely to contribute until FY27.

Beyond XPUs, management also reiterated its belief in the importance of ethernet connectivity, their ability to address scale-up and their general dominance in the space, despite the market’s concerns around rising threats from NVDA expanding their connectivity business.”

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