UBS Raises Broadcom Price Target to $490

UBS analyst Timothy Arcuri raised the price target on Broadcom Limited (NASDAQ: AVGO) to $490.00 (from $475.00) while maintaining a Buy rating.

“Following the conversion of AVGO’s Anthropic order from full racks to a more standard ASIC arrangement (which is now ~25% of the originally expected revenue but much higher margins), we are adjusting our estimates and raising our PT.

The net effect is a reduction in Anthropic contribution from ~$21B/$23B in C2026/C2027E to ~$8B/~$22B, with the bulk of the downward revision concentrated in the earlier ramp phase.

Net, our F2027 AI revenue estimates come down slightly from ~$145B to ~$133B with F2027E EPS coming down just a touch to $21.14.

Regarding the set-up from here, Street estimates look very beatable over the next few quarters with AVGO likely guiding revenue well ahead of Street ~$22B and we model AI revenue of $13.6B for FQ3.

Despite lowering our numbers, we note that broader semiconductor rally over past few months has pushed semis peer group valuation higher and based on the peer group valuation our PT increases modestly from $475 to $490.”

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