Jefferies has maintained its ‘Buy’ rating on Broadcom (NASDAQ: AVGO) and reiterated a 12-month stock price target of $550, implying upside of about 47.7% from the stock’s closing price of $372.45.
The update follows a recent pullback in Broadcom shares, which the firm views as an attractive buying opportunity.
The target also remains above Wall Street’s average 12-month price forecast of $516.91, according to data from 27 analysts covering the semiconductor company.
Among the analysts tracked by TipRanks, 24 rate Broadcom a Buy and three recommend Hold, with no Sell ratings. The consensus AVGO stock price target stands at $516.91, while the highest forecast is $630 and the lowest is $390.
Jefferies analyst Blayne Curtis maintained a bullish outlook on Broadcom, citing improving visibility into the company’s fiscal 2028 earnings potential, continued progress in its tensor processing unit (TPU) roadmap, and an expanding customer base for custom artificial intelligence chips.
The analyst noted that investor concerns over Broadcom’s exposure to MediaTek appear overdone, while the company’s broader AI strategy continues to gain momentum.
Broadcom’s growing AI inroads
A key factor supporting the positive outlook is Broadcom’s growing presence in the AI infrastructure market. The company has expanded its application-specific integrated circuit (ASIC) customer base and recently secured a new multi-generation partnership with OpenAI for AI accelerators.
Jefferies also highlighted Broadcom’s long-term agreement with Alphabet’s Google for TPUs, which runs through 2031 and provides greater visibility into future revenue.
The firm pointed to Broadcom’s recent unveiling of Jalapeno, an AI processor developed in collaboration with OpenAI, as another catalyst for long-term growth.
According to Jefferies, early testing suggests the chip could deliver meaningful performance gains while reducing power consumption compared to competing solutions. The processor was developed in less than a year with support from OpenAI’s large language models.
The analyst believes demand for externally supplied TPUs could become a significant growth driver for Broadcom in the coming years as major technology companies continue increasing AI-related capital expenditures.
Jefferies’ $550 price target is based on expectations that Broadcom can generate fiscal 2028 earnings per share of between $30 and $40.
The valuation implies a multiple of roughly 28 times earnings, reflecting confidence in the company’s AI-driven growth opportunities.
