AVGO earns a BUY with a $426 price target implying 17% upside, fueled by AI semiconductor revenue that surged 221% year over year to $16.7 billion.
Broadcom wins hyperscaler custom chip contracts NVDA can’t capture, while its $1.7 trillion market cap leaves rival MRVL’s custom XPU franchise far behind.
Management projects $230 billion in AI semiconductor revenue by fiscal 2028, backed by named multi-year deals with Google, Meta, OpenAI, and Anthropic.
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Broadcom’s rise into the trillion-dollar club is now driven by custom silicon for the world’s most valuable AI labs, well beyond the initial VMware synergy narrative. With Broadcom (NASDAQ:AVGO) guiding to $21.7 billion in AI semiconductor revenue next quarter alone, the question has shifted to how quickly AVGO climbs alongside NVIDIA at the top of the tech market cap table.
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Our 24/7 Wall St. price target for Broadcom is $426.47, implying 17.2% upside from the $364.38 close, and we rate the stock a buy with high (90%) confidence.
24/7 Wall St. Price Target Summary
A Sharp Pullback Off The Highs
AVGO has cooled recently, sliding 13.74% in the past month and 0.78% on the week, though shares are still up 9.02% over the past year and 703.49% over five years. The 52-week range of $289.48 to $494.18 tells you volatility is part of the deal. The pullback came despite a strong Q3 FY2026 report on September 2.
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Revenue hit $29.59 billion, up 85.5% year over year, and non-GAAP EPS of $3.32 extended the beat streak to nine straight quarters. AI semiconductor revenue reached $16.7 billion, up 221% year over year, and CEO Hock Tan said Q3 demand was “simply hot and we’re just getting started.”
AVGO Earnings Explorer — 24/7 Wall St.
Bull Case: $534 And Beyond
The bull case is straightforward. On the Q3 call, management laid out a fiscal 2027 AI semiconductor outlook of roughly $115 billion and a fiscal 2028 outlook of $230 billion, and said the company is “very much on target to exceed $30 in earnings per share in fiscal 2028.”
Broadcom is building multi-generation custom XPU roadmaps for Google, Meta, OpenAI, and Anthropic, with the Google agreement alone described as “multi-tens of billions of dollars of TPUs annually.”
The 45 analysts covering AVGO carry a consensus price target of $533.41, our bull scenario. Reaching that would imply about 46.76% upside from here.
AVGO Analyst Ratings — 24/7 Wall St.
What Could Go Wrong
Concentration risk is real. Management noted that just four of six XPU customers are expected to drive the vast majority of AI revenue. Q4 gross margin is guided down to 73% from 78% a year earlier as memory-heavy XPUs dilute mix. Bulls counter that operating margin still expands, hitting a guided 66% in Q4, because revenue is outrunning opex.
Broadcom also carries $59.6 billion in gross fixed-rate debt, and residual value guarantees tied to AI financing partnerships with Apollo and Blackstone could become contingent liabilities. Our bear scenario lands at $376.69, still modestly above today’s price.
AVGO Price Target — 24/7 Wall St.
How Broadcom Compares To NVIDIA And Marvell
The obvious anchor is NVIDIA (NASDAQ:NVDA), the merchant GPU king whose Data Center franchise dwarfs Broadcom’s AI silicon run rate, but AVGO wins the head-to-head where hyperscalers want custom accelerators rather than general-purpose GPUs. That divergence supports the reasonableness of our $426 target.
The purer custom-silicon comp is Marvell Technology (NASDAQ:MRVL), which competes for the same custom XPU sockets. Marvell’s most recent quarter is a fraction of AVGO’s $29.6 billion print, and its market cap remains a small share of Broadcom’s, underscoring how much larger Broadcom’s franchise has become. Against both peers, AVGO’s forward P/E of 19 looks like the cleanest AI valuation in the group.
Broadcom Price Prediction 2026 To 2030
Our 24/7 Wall St. price target of $426.47 supports a buy with 90% confidence. The key factor tipping the scale is the fiscal 2028 AI trajectory management just put on the table, backed by named customer deployments and secured supply.
The setup favors investors who can stomach mega-cap volatility and a hyperscaler-concentrated revenue base. It is less suited for those who need dividend yield or lower beta, since AVGO’s 0.73% yield and 1.457 beta will not comfort conservative income investors.
Looking further out, our model projects the following base-case trajectory, assuming AVGO executes on the fiscal 2027 and 2028 AI outlook.
AVGO Price Scenario — 24/7 Wall St.
These projections assume Broadcom keeps executing on its custom XPU roadmap. Significant upside or downside could come from hyperscaler capex swings, an OpenAI or Anthropic financing disruption, or a step-change in the U.S. China trade regime.
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