HSBC Broadcom · AVGO

HSBC Upgrades Broadcom to Buy, $400 Price Target

Analyst: Frank Lee 1 min read Reproduced verbatim
Rating
Buy
from Hold
Target
$400
Outcome
Reached
on November 28, 2025
HSBC and Broadcom logos

What the analyst said

HSBC analyst Frank Lee upgraded Broadcom Limited (NASDAQ: AVGO) from Hold to Buy with a price target of $400.

“In our 6 June note, Enhanced FY26 ASIC confidence, we had highlighted that we believe there is an increasing confidence over FY26 ASIC revenue growth which was reflected post the 2QFY25 earnings call as the sell-side consensus ASIC revenue estimates were raised for FY26/FY27 by 23%/28%, respectively.

However, we believe Broadcom’s ASIC revenue potential for FY26/FY27 is still undervalued given increasing hyperscaler AI server capex allocation toward ASIC projects from 2% in FY23 to 14% in FY27e as we expect industry ASIC revenue to grow at a CAGR of 96% compared to AI GPUs growing at a CAGR of 47% from 2023-2027e.

We also believe that ASIC projects are moving towards a bigger die size, which means a significantly higher pricing premium.

Hence, we now expect ASIC blended ASPs to increase 92% y-o-y in FY26e and another 25% in FY27e.

Therefore, we revise our ASIC revenue estimates for FY26/FY27 by 58%/96% to USD28.4bn/USD42.8bn which are now 42%/69% higher than consensus estimates of USD19.9bn/USD25.3bn.”

Disclaimer
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This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.

Where the price stands

AVGO trades at $352. The 21 analysts who set a target in the last 3 months range from $400 to $630, with a median of $515. This $400 target is 22% below the median, the lowest on the Street.

Since the note AVGO has moved +39% (from $254). The 12-month window closed on June 24, 2026.

Track record

This call✓ Target reached on November 28, 2025, 5 months after the note.

Firm track recordHSBC: 59% of its 17 targets at least a year old were reached within 12 months (#21 of 21 firms); on Broadcom, 2 of 3. Accuracy ranking →

HSBC on Broadcom

HSBC price targets on Broadcom

6 calls from June 6, 2025 to June 2, 2026. The target went from $240 to $600 (+150%). The rating moved from Hold to Buy.

HSBC targetAVGO share price
  1. June 2, 2026Target raised from $535 (+12%)Buy$600
  2. December 12, 2025Kept the $535 targetBuy$535
  3. December 8, 2025Target raised from $400 (+34%)Buy$535
  4. September 5, 2025Kept the $400 targetBuy$400
  5. June 24, 2025 This noteUpgraded to Buy, target raised from $240 (+67%)Buy$400
  6. June 6, 2025Earliest call shownHold$240
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Other analysts on Broadcom

StoneXBuy Kept rating and price target Oct 27 $545maintained UBSBuy Kept rating and price target Oct 27 $470maintained RosenblattBuy Kept rating and price target Oct 27 $600maintained DA DavidsonBuy Upgraded, raised price target +14% Oct 27 $400from $350 KeyBancBuy Kept rating and price target Oct 27 $575maintained
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Price Target is an archive of Wall Street analyst research, published for informational purposes only. Nothing on this site is investment advice, a recommendation, or an offer to buy or sell any security. Analyst ratings and price targets are the opinions of the issuing firms, not of Price Target. Always do your own research or consult a licensed financial adviser.