Broadcom (AVGO) Stock Forecast & Price Target

Broadcom is positioned for sustained outperformance because AI demand is translating into extraordinary top-line growth, with 3Q26 revenue up 85% year over year to $29.6B and semiconductor solutions up 127.4% to $20.8B, now 70% of consolidated revenue. Management’s visibility through 2028, including AI semiconductor revenue guidance of $115B in FY27 and $230B in FY28, alongside multi-gigawatt deployments for Anthropic and OpenAI, supports the view that demand remains well above secured supply despite near-term margin pressure from higher memory costs. Its diversified mix of custom accelerators, networking, and infrastructure software, plus strong operating leverage and debt reduction, underpins a positive outlook and suggests EPS can exceed $30 in FY28.

Broadcom is facing a negative fundamental setup because the market’s expectations were already elevated, yet near-term revenue guidance failed to clear that bar, even after strong quarterly results. Although AI custom silicon was $12.2B, up 261% Y/Y and now 73% of AI semiconductor revenue, the business still carries cyclical risk from a semiconductor super cycle entering its 4th year, potential customer disintermediation, and lower XPU revenue per GW trends. Non-AI semiconductor revenue of about $4.14B and infrastructure software revenue of $8.75B both came in below expectations, while margin pressure, circular funding concerns, and acquisition integration risk continue to cloud durability.