Benchmark Raises Broadcom Price Target to $485

Benchmark analyst Cody Acree raised the price target on Broadcom Limited (NASDAQ: AVGO) to $485 (from $385) while maintaining a Buy rating.

“With Broadcom’s shares having increased more than 120% over the past twelve months, we believe investors were prepped for profit taking, almost regardless of the strength of last night’s earnings release.

However, with the company’s after-hour pressure notwithstanding, we believe there was a lot for investors to be encouraged by in the company’s report, not the least of which was the announcement of $21 billion of orders from Anthropic over the past two quarters and a six quarter AI order backlog that has grown to $73 billion.

Anthropic joins Broadcom’s growing customer list that now includes Meta, ByteDance, and Google, plus a new unnamed agreement, largely speculated to be with OpenAI, to supply $1 billion of chips scheduled for delivery in late 2026, with the two companies confirming a strategic, multi-year collaboration with Broadcom agreeing to supply custom chips to support ~10 GW of power for OpenAI’s data centers beginning in CY27 and extending through 2029.

Broadcom is also the most direct beneficiary of Google’s successful push to deploy its Ironwood TPUs for third party use to a growing list of customers that currently include Apple, Cohere, and SSI.

All of this equated to the company’s AI semiconductor business totaling $6.5 billion in Q4, up 25% sequentially and 76% year-over-year, and its AI chip sales are guided to $8.2 billion in Q1, up another 25% Q/Q and more than doubling versus last year.

While Broadcom’s custom XPU business obviously gets the bulk of investor attention, the company is also seeing strength across its networking, DSP, optical components, and switching portfolio, where its current switch order backlog is said to be greater than $10 billion.”

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.