Oppenheimer Reiterates Outperform on Broadcom, $360 Price Target

Oppenheimer analyst Rick Schafer reiterated an Outperform rating and $360 price target on Broadcom Limited (NASDAQ: AVGO).

“Monday Broadcom and OpenAI announced a strategic partnership to deploy 10GW DC infrastructure.

Unlike other recently announced OAI deals, AVGO did not invest in OAI or issue warrants.

OpenAI and AVGO will co-develop AI systems that include custom AI XPU accelerator and Ethernet networking for scale up, scale out, and scale across.

The rack scale systems will support inference workloads. AVGO/OpenAI have collaborated for the last 18 months. Deployments begin 2H26 and run through 2029.

OAI CEO Sam Altman highlighted optimized systems delivering more performance/ watt efficiency. No details on revenue/GW were shared by mgmt. We estimate AVGO content per GW could exceed $15B.

Separately, AVGO President of Semiconductor Solutions Charlie Kawwas stated on CNBC that the $10B custom AI XPU win announced Sept. 9, shipping F3Q + F4Q, is not OpenAI.

AVGO is the long time builder of GOOG TPU.

We believe additional project partners/customers include ByteDance, META MTIA, OpenAI, and a fifth XPU which we believe could be xAI given AVGO’s focus on serving hyperscalers developing frontier LLMs.

While we see today’s announcement incremental to AVGO revs./EPS, we’re holding off formally updating our model until more details are available.

We reiterate our Outperform rating and $360 price target.”

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