
Broadcom (AVGO) Stock Forecast & Price Target
Broadcom (AVGO) Analyst Ratings
Bulls say
Broadcom has demonstrated strong financial performance, with semiconductor operating margins at 57% and robust growth in both its AI and Infrastructure Software segments, including a 47% increase in annual software revenue to $6.7 billion. The company anticipates continued momentum in AI, projecting revenue growth to $4.4 billion for the upcoming quarter, which marks a significant year-on-year increase of 44%. Additionally, the steady recovery in the broadband business and ongoing advancements in its XPUs designs contribute to a positive outlook, bolstered by Broadcom's track record of successful consolidation and strategic investments in R&D.
Bears say
Broadcom is anticipating a sequential revenue decline of approximately 3% in the second quarter, primarily due to seasonal weakness in its Wireless business, which has historically experienced fluctuations linked to its major customer, Apple. Additionally, the non-AI Enterprise Networking segment is projected to remain flat through the first half of the year as it addresses excess inventories, reflecting broader challenges within this sector. Despite a slight reduction in gross debt from $70 billion to $68.8 billion, any substantial decrease in cash flow raises concerns regarding the company's financial stability and ability to meet debt obligations, potentially impacting investor confidence.
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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