KeyBanc Raises Broadcom Price Target to $420

KeyBanc analyst John Vinh raised the price target on Broadcom Limited (NASDAQ: AVGO) to $420 (from $400) while maintaining an Overweight rating.

“Positive takeaways include: 1) we’re seeing significant upward revisions in CoWoS supply next year to 190K, which represents over a 160% y/y increase; 2) TPU7e (Mediatek) delays will allow AVGO to maintain 100% share of the Google TPU franchise through 2026; 3) TPU shipments are expected to more than double in 2026, as Google looks to make its TPU more broadly available for broader workloads; 4) OpenAI is ramping its AI ASIC in 2H26 with volumes estimated at 400K-500K units; and 5) AAPL is also expected to ramp its AI ASIC next year with volumes estimated at 100K.AVGO is significantly revising its CoWoS supply in 2026 to 190K, which represents over a 160% y/y increase, which is being driven by: 1) TPU strength as AVGO will have 100% share of TPU through 2026 given the delay of TPU7e (MTK); 2) TPU volumes are expected to double in 2026 as Google expects to broaden out the use of its TPU for AI workloads with external customers; and 3) the ramp of new AI ASIC wins at OpenAI (400-500K) and AAPL (100K).”

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