
Broadcom (AVGO) Stock Forecast & Price Target
Broadcom (AVGO) Analyst Ratings
Bulls say
Broadcom is poised for significant revenue growth, with its fourth quarter forecast predicting total semiconductor revenue to reach approximately $10.7 billion, supported by robust demand in both AI semiconductors and non-AI chip sectors. The company's strategic expansion into AI technologies is projected to lead to substantial long-term growth, with estimated AI semiconductor revenues expected to rise by 75% annually to $34.7 billion in FY26 and an additional 32% to nearly $46 billion in FY27. Additionally, Broadcom's infrastructure software division demonstrates strong performance, forecasting a year-over-year revenue increase of 15% to $6.8 billion, backed by solid software bookings totaling over $8.4 billion in Q3.
Bears say
Broadcom's third-quarter performance showed declines in key segments such as Enterprise Networking and Server Storage, indicating potential weaknesses in its core semiconductor business. The company's forward guidance for EPS at $1.86 is just below its prior estimates, suggesting potential struggles in maintaining robust profitability amidst competitive pressures and reliance on major clients like Apple and Cisco. Additionally, management anticipates a decrease in Non-GAAP gross margin due to a shift in revenue mix, raising concerns about sustainability in the face of macroeconomic headwinds and demand fluctuations in high-end smartphone markets.
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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