UBS Reiterates Buy on Broadcom, $485 Price Target

UBS analyst Timothy Arcuri reiterated a Buy rating and $485.00 price target on Broadcom (NASDAQ: AVGO).

“We believe back-end supply has become an issue and is resulting in some changes to AVGO’s roadmap for the upcoming v9 generation for the Google TPU.

Additionally, AVGO announced a 20GW SPV with Apollo and Blackstone for OpenAI and Anthropic.

We think the SPV helps formalize capacity and financing structures, but is capturing already existing engagements with OpenAI and Anthropic that AVGO helped size for C2027 (Anthropic TPU ~6GW and OpenAI ~1.3GW), which is already captured in our model.

As we look into C2028E, we think the SPV suggests 2-yrs cumulative shipments could scale to 20GW or ~13GW in C2028.

The ~13GW shipments for Anthropic + OpenAI in C2028 at $10–15B/GW (ASIC + networking) imply ~$130–190B in revenues alone, with further contributions from GCP TPU shipments ($73B in C2028 in our model) and META (~$20B in C2028).

The Google upside, however, is now somewhat in question in our minds given the recent roadmap changes and supply challenges.”

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.

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.