Although Broadcom Inc. (NASDAQ: AVGO) stock fell by 5% over the past 12 days through September 14, after the company’s fourth-quarter revenue guidance fell short of Wall Street expectations, Vijay Rakesh, an analyst at Mizuho Securities, has predicted a rally towards a new all-time high (ATH) over the next 12 months.
Rakesh reiterated a ‘Buy’ rating for Broadcom stock, according to a note sent to clients on September 12. He also maintained the firm’s 12-month price target at $530.
With AVGO stock trading at $350.69 during Monday’s pre-market session, Mizuho Securities expects a potential 51.13% increase. Despite Broadcom reporting a fiscal fourth-quarter revenue outlook of $34.8 billion, which was below Wall Street’s consensus estimate of roughly $35.03 billion, Rakesh anticipates a fresh rally towards a new ATH over the next 12 months, primarily fueled by the company’s accelerating Artificial Intelligence (AI) semiconductor trajectory.
Furthermore, Broadcom has secured multi-gigawatt XPU (X Processing Unit) deployment commitments from several tech giants including Anthropic, OpenAI, Alphabet (NASDAQ: GOOGL), and Meta Platforms, Inc. (NASDAQ: META). Specifically, the company’s management has secured the supply commitments to deliver $115 billion in AI revenue in fiscal year 2027 and $230 billion in fiscal year 2028.
Is Broadcom a good stock to buy?
At the time of writing, 30 Wall Street analysts surveyed by TipRanks over the past 3 months have set an average 12-month price target for Broadcom stock at $519.21.
The highest 12-month price target for AVGO from these surveyed experts is $630, while the lowest was $350. This ‘Strong Buy’ average rating from these analysts is based on an expected AI boom continuation.
AVGO price performance
Year-to-date (YTD) AVGO price has added approximately 4.59%. As such, Broadcom has a reported market capitalization of about $1.7 trillion at the time of publication.
Consequently, Wall Street analysts view AVGO’s 19% price correction from its all-time high of $495 as a buying opportunity.
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