JPMorgan Raises Broadcom Price Target to $580
JPMorgan analyst Harlan Sur raised the price target on Broadcom Limited (NASDAQ: AVGO) to $580.00 (from $500.00) while maintaining a Overweight rating.
“We came away from the F2Q (Apr-Q) print incrementally more positive on AVGO’s growth outlook over the next couple of years, reinforcing our conviction that the AI compute buildout remains early-innings and that AVGO is the most strategically entrenched provider of ASIC/XPU compute/networking.
Apr-Q results were solid and, despite a fair amount of hand-wringing ahead of the print, Jul-Q guidance still landed ahead of Street consensus with revenue of $29.4B (+84% Y/Y) and AI semis revenue up 200%+ Y/Y to $16B.
But the more important signal was orders: AI bookings eclipsed $30B against $10.8B shipped, lifting backlog sharply and raising revenue visibility even further.
Mgmt even struck a very confident tone on FY28 visibility (unusually early), with what we see as ample room for that FY28 pipeline to keep building over the next 12-18 months.
Management detailed an expanding, increasingly diversified customer set, reaffirming a multi-generation TPU engagement with Google, underpinned by substantial revenue commitments from Google and reciprocal supply commitments from AVGO (which we have repeatedly highlighted – link, link); Anthropic, layering an incremental ~5 GW of next-gen TPU from FY27 atop its >1 GW FY26 footprint; OpenAI, with first silicon already delivered and 1.3 GW slated for FY27 within its 10 GW/2029 commitment; Meta’s multi-generation MTIA program (3 GW through 2028, initial 1 GW XPU-plus-networking order delivering in 2H27); and two further customers ramping from late 2026, with $6B of POs already in hand.
Notably, for AVGO’s >20 GW XPV compute platform built with Apollo and Blackstone to fund capacity for Anthropic and OpenAI, we estimate only ~5 GW is delivered in FY27 (~1.3 GW OpenAI + ~3.5 GW Anthropic), implying ~15 GW still to ship in FY28 for those two customers alone; folding in Google, Meta, and other at-scale programs, we think FY28 AI revenue could approach $300B – far in excess of current expectations.”
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