Broadcom’s (NASDAQ: AVGO) latest earnings report has sparked a wave of bullish reactions from Wall Street analysts, with consensus centering on the company’s accelerating artificial intelligence (AI) momentum.
Notably, Broadcom delivered stronger-than-expected fiscal Q3 results and issued upbeat guidance, sending shares higher in extended trading.
The chipmaker posted adjusted earnings of $1.69 per share, above the expected $1.65, while revenue rose 22% year-over-year to $15.96 billion, topping estimates. For Q4, Broadcom forecasts revenue of $17.4 billion, surpassing Wall Street’s consensus of $17.02 billion.
To this end, shares of AVGO reacted positively, ending the last session up nearly 10% at $334. Year-to-date, the stock has gained about 44%.
Wall Street weighs in on AVGO stock
Among the analysts weighing in, Truist Securities’ William Stein reiterated a ‘Buy’ rating with a $365 price target, describing the quarter as “solid” and pointing to a sharp increase in AI infrastructure backlog. He expects legacy AI customers to sustain around 60% growth in fiscal 2026, while the new client could fuel further upside into fiscal 2027.
TD Cowen’s Joshua Buchalter, who also has a ‘Buy’ rating with a $370 target, said near-term upside from custom processors is quickly overshadowed by massive expectations for 2026. He noted the steep but achievable ramp if Broadcom’s engagements scale as planned, with the $10 billion order materially lifting forecasts despite potential margin pressures.
At Piper Sandler, Harsh Kumar raised his target to $375 and maintained an ‘Overweight’ stance, citing Broadcom’s strong AI performance and guidance. He highlighted the importance of the fourth customer’s $10 billion order, suggesting custom processors could become the company’s dominant compute segment. Kumar also pointed to strength in networking and infrastructure software, which led him to raise 2026 forecasts and introduce 2027 estimates.
KeyBanc’s John Vinh echoed peers in emphasizing the importance of the fourth AI customer, which he believes is likely OpenAI. He raised estimates while noting Broadcom’s AI semiconductor revenue climbed 63% year-over-year to $5.2 billion in the third quarter and is set to accelerate further in Q4. Vinh also highlighted CEO Hock Tan’s pledge to remain in his role through at least 2030.
Bernstein’s Stacy Rasgon, with an ‘Outperform’ rating and a $400 price target, praised Broadcom’s $16 billion revenue and $1.69 EPS, both slightly above consensus. He underscored the 63% growth in AI revenue as evidence that the company’s growth narrative is gaining momentum. Rasgon raised his estimates and argued the valuation looks increasingly justified given the substantial upward revisions to AI revenue.
