BofA Raises Broadcom Price Target to $300

BofA Securities analyst Vivek Arya raised the price target on Broadcom Limited (NASDAQ: AVGO) to $300 (from $240) while maintaining a Buy rating.

“Inline Q2 results and Q3 outlook on: 1) product transition in custom chips (XPU), and 3) cyclical headwinds in non-AI sales.

AVGO raised 2H25 and FY26 AI outlook strongly towards ~60% YoY growth versus our 42%/32% YoY in our prior model.

Per AVGO, upgrades are being driven by stronger deployments of compute for inference, similar to peers.

While some might be disappointed AVGO did not update its FY27 $60-$90bn AI TAM, we believe it’s only a matter of time especially as FY27 sell-side AI revenue cons. ests. is still well below $45bn, so plenty of headroom for upgrades.

We raise FY25/26/27 sales by 1%/5%/10% (stronger AI offset by muted non-AI, software), raise pf-EPS by 0.4%/4%/8% to $6.55/$7.97/$9.87, and take PO to $300 from $240 on 35x CY26E PE vs 30x prior on stronger AI and still within l-t 11x-35x range.

Reit.

Buy, a top computing and top-5 sector pick on unique mix of capital appreciation and consistent dividend growth with a blend of recurring (50% software), secular (AI) and cyclical (non-AI) profiles.”

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