KeyBanc Affirms Overweight on Broadcom, $420 Price Target

KeyBanc analyst John Vinh reiterated an Overweight rating and $420 price target on Broadcom Limited (NASDAQ: AVGO).

“We expect higher results and higher guidance, as we expect AVGO to benefit from strong AI demand, which should driven robust demand in networking and in AI ASICs.

We expect tailwinds associated with Google TPU strength, where we expect AVGO to retain 100% share through ’26 given the delay of TPU7e (MTK), and redevelop TPUv6 as TPUv7x (training; rebrand of TPU6p) & TPUv7ax (inference).

Additionally, we expect tailwinds from the ramp of Meta’s AI ASIC, MTIA v2. We expect AVGO to post higher F4Q25 (Oct) results and higher F1Q26 (Jan) guidance.

Our F4Q25 revenue/EPS estimates are $17.5B/$1.87 vs. consensus estimates of $17.4B/$1.86, and our F1Q26 revenue/EPS estimates are $16.9B/$1.78 vs. consensus estimates of $18.3B/$1.96.

Street sentiment on the name is positive given the Company’s premier provider positioning as an AI ASIC provider.

We expect investors will be focused on: 1) color on the timing and nature of the $10B revs associated with fourth ASIC customer (OpenAI); 2) updates on its AI outlook, ASIC backlog, and engagements given potential volatility from pull-ins and still strong demand for generative AI; and 3) any potential additions to the XPU customer/prospect pipeline (currently at 7).”

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