TD Cowen has reiterated its Buy rating on Broadcom (NASDAQ: AVGO) and maintained a stock price target of $500.
The updated AVGO price target was issued on August 18 by analyst Joshua Buchalter and implies a potential upside of about 31% from the stock’s last closing price of $380.
The firm maintained its positive stance on the semiconductor giant as investors continue to focus on artificial intelligence infrastructure spending and Broadcom’s growing role in AI chip deployments.
According to the analyst update, TD Cowen’s bullish outlook is supported by Broadcom’s multi-year visibility in artificial intelligence semiconductor revenue.
The firm reiterated management’s projection of more than $100 billion in AI semiconductor revenue by fiscal 2027.
The analyst also noted that deployments exceeding 10 gigawatts could provide additional upside to Broadcom’s long-term growth outlook.
Confidence remains supported by Google’s TPU program, with the company’s capital expenditure commentary reinforcing expectations for continued demand.
TD Cowen further stated that Broadcom has earned the benefit of the doubt regarding its ability to maintain a strong market position with Google, despite increasing competition and evolving AI infrastructure requirements.
While maintaining the ‘Buy’ rating, Buchalter highlighted several risks that could affect the company’s outlook. These include uncertainty surrounding other XPU programs, softer timelines for Meta’s MTIA initiative, and questions surrounding projects such as OpenAI’s ASIC development efforts.
The analyst also pointed to MediaTek’s TPU revenue ramp as a narrative headwind and noted potential technical and commercial challenges associated with scaling new compute platforms.
Despite these concerns, TD Cowen said expectations ahead of Broadcom’s next results remain anchored by increasing multi-year AI visibility and strong gross margin performance.
Wall maintains positive AVGO stock outlook
The latest update aligns with broader Wall Street sentiment toward Broadcom. Based on ratings from 26 analysts tracked by TipRanks, AVGO carries a ‘Strong Buy’ consensus, with 23 ‘Buy’ ratings and three ‘Hold’ ratings.
Analysts’ average 12-month Broadcom stock forecast stands at $515.61, representing roughly 35.7% upside from recent trading levels. The highest published target is $630, while the lowest target is $390.
With AI infrastructure spending remaining a key growth driver, analysts continue to view Broadcom as one of the primary beneficiaries of increasing demand for advanced semiconductor and networking solutions.
The outlook comes at a time when the stock has experienced short-term volatility, falling about 10% over the past week, though it remains up roughly 9% year-to-date.
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