Morgan Stanley Raises Broadcom Price Target to $270

Morgan Stanley analyst Joseph Moore raised the price target on Broadcom Limited (NASDAQ: AVGO) to $270 (from $260) while maintaining an Overweight rating.

“Thoughts on the stock: AVGO seems the most uncontroversial of the AI names ever since the 2027 SAM raised longer term expectations.

That makes sense to us – the company’s position is solid, and the addition of up to 4 additional customers should be a nice growth driver.

AI continues to track to about 10% of the NVIDIA data center number – a little higher in July, mostly because of NVIDIA China shortfall – but with smaller numbers, the multiple can be higher than NVDA at times.

That said, the consensus nature of AVGO, and the recent outperformance does makes us think that the NVDA opportunity is more appealing, and we do see NVIDIA continuing to outgrow the ASIC market in 2h – even just counting the customers who use ASICs.

We like both stocks, to be clear, but we do see more upside to PT for NVDA. We raise our PT slightly to $270, based on a 40x multiple on CY26 MW EPS (includes stock based compensation) of $6.77.

We slightly raised the multiple from 39x previously to reflect higher AI visibility next year.

Broadcom has one of the most compelling bull cases, and while there is significant optionality in their long-term outlook, their ambitious SAM is materially possible. We stay OW.”

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