Goldman Sachs Raises Broadcom Price Target as AI Chip Business Booms
Goldman Sachs increased its price target on Broadcom shares from $380 to $435, maintaining a buy rating ahead of the company's December 12 earnings report. The chipmaker's stock has surged 66% year-to-date, nearing a $2 trillion valuation as demand for its custom AI accelerators grows.
Broadcom's XPU chips now represent 65% of AI-related revenue, fueled by partnerships with Google and OpenAI. Analysts project Q4 revenue between $17.0-$17.4 billion, with AI chip sales expected to reach $6.2 billion—a 66% year-over-year increase.
The market anticipates fiscal 2026 AI revenue guidance exceeding 100% growth, potentially surpassing $11 billion. Goldman's analyst calls Broadcom the critical 'arms dealer' in the AI infrastructure race, though current valuations demand exceptional performance to justify further gains.
