Bernstein Raises Broadcom Price Target to $295

Bernstein SocGen Group analyst Stacy Rasgon raised the price target on Broadcom Limited (NASDAQ: AVGO) to $295 (from $250) while maintaining an Outperform rating.

“Broadcom’s FQ225 earnings were solid ($15.0B/$1.58 vs the Street $15.0B/$1.56) with semis at $8.4B in-line and software ($6.6B) in-line to a touch above.However, the AI part of the business appears set to continue its run into 2026, with the company seemingly suggesting AI sales next year in the ballpark of ~$30B, $4-5B above current sell-side consensus and suggesting potential for numbers to inflect higher amid a continued solid engagement pipeline.

This (far) more than offsets persistent core semi weakness (which itself presumably should start to get better eventually).

And VMware continues to over-deliver, with solid growth set into next year as well.

We suspect that had the stock not gone vertical into the print, these AI-driven results would have been taken positively.

As it is, high expectations drove a bit of downside (~4 points) in the aftermarket. That being said, the AI narrative is clearly strengthening; overall the story still has legs.

We raise estimates and roll valuation forward; taking PT from $250 to $295 (~33x P/FE, unchanged, on FY26/27 avg EPS of $8.70).”

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