Broadcom (AVGO) Stock Forecast & Price Target

Broadcom is well positioned by extraordinary forward visibility in AI semiconductors, with management guiding FY27 AI revenue to $115B and FY28 to $230B, while also expecting EPS to exceed $30 in FY28, implying powerful operating leverage. Its growth thesis is reinforced by demand that management says exceeds secured supply, strong customer wins at Google, Anthropic, OpenAI, and Meta, and a networking franchise that is growing alongside XPUs. Despite some gross-margin pressure from higher memory costs, Broadcom’s diversified software base, 70% semiconductor revenue mix, and disciplined capital allocation support a durable, high-quality earnings compounding story.

Broadcom is facing a late-cycle semiconductor risk profile, as the current supply-constrained upcycle is already in its 4th year and historically gives way to oversupply, while global GDP sensitivity and pricing pressure could quickly weaken non-AI demand. Its fundamentals also show uneven execution: non-AI semiconductor revenue of about $4.14B missed expectations, infrastructure software revenue of about $8.75B also came in light, and gross margins are likely drifting toward ~72% as faster-growing AI semis dilute the higher-margin software mix. The bull case is further tempered by concentration and integration risks, since Google could internalize custom ASIC design, circular funding concerns may persist, and Broadcom’s acquisition-heavy model creates ongoing uncertainty around shareholder value and litigation, especially tied to VMware.