
Broadcom (AVGO) Stock Forecast & Price Target
Broadcom (AVGO) Analyst Ratings
Bulls say
Broadcom's strong financial performance is underscored by a substantial $6.5 billion in AI semiconductor revenue for the quarter, reflecting a year-over-year increase of 74%, and the company is projecting revenue growth of 28% year-over-year, reaching $19.1 billion in the upcoming quarter. The significant improvement in operating margins, with a 70-basis point sequential increase and a 250-basis point year-over-year rise in semiconductor operating margins, highlights the efficiency and profitability of Broadcom's core business. Additionally, the company reports a remarkable total consolidated backlog of $162 billion, driven by robust demand in AI and software, indicating strong future growth potential across its diverse product offerings.
Bears say
Broadcom is facing a negative outlook due to anticipated declines in gross margin, projected to decrease by 100 basis points sequentially as a result of rapid growth in its lower-margin XPU business. Additionally, while the broadband segment shows a recovery, overall non-AI semiconductor revenue has stagnated year-over-year, with expectations of further sequential declines in non-AI revenue to approximately $4.1 billion. Concerns about cash flow stability and debt obligations further compound the challenges to Broadcom’s financial position and could hinder stock performance.
This aggregate rating is based on analysts' research of Broadcom and is not a guaranteed prediction by Public.com or investment advice.
Broadcom (AVGO) Analyst Forecast & Price Prediction
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