Wolfe Research Affirms Peer Perform on Broadcom

Wolfe Research analyst Chris Caso reiterated a Peerperform rating on Broadcom Limited (NASDAQ: AVGO).

“Maintain Peer Perform rating. AVGO added a 4th XPU customer that is expected to contribute significant revenue in 2H26, which drives our estimates higher.

The nature of this custom revenue is however challenging to model, which is why we think management chose not to update their view on FY27.

This commentary does tend to validate the view that XPU is gaining share (albeit from a small base relative to GPU), and that AVGO is the main beneficiary of that trend.

The questions on the stock going forward are sustainability (given the inherently lumpy nature of custom revenue) and valuation (at 34x our FY26 EPS, AVGO is trading at a ~7 turn premium to NVDA).

At the very least, the report suggests that the AI train does not appear to be slowing.”

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.