
Broadcom (AVGO) Stock Forecast & Price Target
Broadcom (AVGO) Analyst Ratings
Bulls say
Broadcom has demonstrated robust financial performance, with operating margins in the semiconductor segment reaching an impressive 57%, underscoring the company's efficient management and profitability. The company anticipates a significant surge in AI revenue, projecting growth to $4.4 billion in the upcoming quarter, which reflects a 9% sequential and 44% year-over-year increase, driven by advancements in next-generation designs. Additionally, Broadcom's Infrastructure Software segment reported a remarkable 47% annual growth to $6.7 billion, illustrating strong market demand and successful integration of its acquisitions, particularly from VMware.
Bears say
Broadcom's second-quarter forecast indicates a sequential revenue decline of 3% to $6.5 billion, driven primarily by seasonal weaknesses in its Wireless business, particularly affecting its largest customer, Apple. The company's Enterprise Networking revenue remains stagnant, suggesting challenges in overcoming excess inventories, while its Server Storage segment experienced only modest growth despite a sequential decline. With a substantial gross debt of $68.8 billion, even with recent repayments, any significant drop in cash flow or failure to meet debt obligations could adversely impact investor confidence and the company's overall financial stability.
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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