Bernstein Raises Broadcom Price Target to $400

Bernstein SocGen Group analyst Stacy Rasgon raised the price target on Broadcom Limited (NASDAQ: AVGO) to $400 (from $295) while maintaining an Outperform rating.

“Broadcom’s FQ325 earnings were good ($16.0B/$1.69 vs Street $15.8B/$1.67) with both semis and software better than expected.

While non-AI semis remain slow to recover AI semis revenues were quite strong at ~$5.2B, up ~63% YoY and above expectations.The Broadcom narrative is going to take off once again, and at this point we suppose a bear would have to hope that the company is getting out over their skis.

But we note that Broadcom knows this business better than anyone, and Hock must see a runway here as he renewed his contract through 2030, suggesting he sees something worth sticking around for.

We suspect that numbers are going to go up materially with potential room for further upside to come; valuation (which has admittedly looked rich) is clearly becoming justified.

Raising estimates on substantial AI revenue revisions; PT from $295 to $400 (~35x P/FE on FY26/27E avg EPS of $11.38, up from 33x/ $8.70 prior); we rate AVGO Outperform.”

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