Bank of America Raises Broadcom Price Target to $530
BofA Securities analyst Vivek Arya raised the price target on Broadcom Limited (NASDAQ: AVGO) to $530.00 (from $450.00) while maintaining a Buy rating.
“AVGO FQ2 results and FQ3 outlook only modestly above Street expectations, but we flag the important absolute AI growth remains on track for ~180% YoY in FY26 and almost ~100% YoY in FY27.
Mgmt. did not raise its prior FY27 AI guide of ~$100bn against high expectations (given strong TPU ramp), but we view this as a sign of conservatism given ongoing supply constraints at customers.
Meanwhile, multiple new custom XPU accounts (Anthropic, Meta, OpenAI, two others) are expected to ramp in the coming quarters, likely adding to the strong Google TPU base.
FQ3’s strong Software growth (>30% YoY) also suggests there are multiple growth vectors as part of the AI theme.
Overall, we continue to see EPS power of $30+ by CY30, at ~40% EPS CAGR between CY25-30.
We reiterate Buy, raise FY26-28 sales/EPS estimates by 2-6%, and raise PO to $530 from $450, now based on 30x CY27E PE incl. SBC (vs.
26x prior) on accelerating growth, still attractive at only ~0.5x PEG (in-line with AI compute peers 0.4-0.7x).”
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