HSBC Raises Broadcom Price Target to $600

HSBC analyst Frank Lee raised the price target on Broadcom Limited (NASDAQ: AVGO) to $600.00 (from $450.00) while maintaining a Buy rating.

“We expect ASIC revenue momentum to pick up meaningfully from 2H FY26 as Broadcom begins supplying Google’s TPU v7 (likely higher ASP than v6) and Meta ramps its ASIC.

Broadcom has also added Anthropic and OpenAI under multi-year GW deployment agreements, with deployments starting in 2H FY26 and FY27, respectively, and expects shipments to customers four and five to more than double in FY27.

Therefore, we expect momentum for ASIC revenue to start materially ramping through 2H FY26 into FY27 and beyond.

We believe Broadcom has procured incremental CoWoS capacity from suppliers such as Amkor and ASE – we now estimate 260k wafers in FY26 and 480k wafers in FY27.

Hence, we raise our FY26e/FY27e ASIC revenue to USD46.0bn/USD100.2bn, 23%/26% higher than the Street.

There’s some market concern about Broadcom losing Google’s TPU business in 2028 – we believe this is overdone as both companies have a supply agreement that runs till 2031.”

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