Broadcom (AVGO) Stock Shatters Expectations with Street-High Price Target

Semiconductor giant Broadcom just scored the ultimate Wall Street endorsement—a fresh street-high price target that's sending shockwaves through the tech sector.

The Catalyst: AI Infrastructure Boom

Analysts are betting big on AVGO's dominance in AI-driven networking chips and custom silicon solutions. The company's strategic positioning in data center and cloud infrastructure is paying off—massively.

Market Impact: Leaving Competitors in the Dust

While legacy tech struggles to keep pace, Broadcom's vertical integration and enterprise partnerships continue delivering staggering margins. The stock's momentum suggests institutional investors are loading up before next earnings.

Financial Realities vs. Hype

Let's be real—Wall Street price targets often feel like speculative fan fiction. But when a stock like AVGO consistently outperforms, even the cynics start paying attention. Maybe this time they're actually right about something.

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And it’s not hard to see why. The company has carved out a key spot as a go-to supplier of the infrastructure and advanced packaging that big tech firms rely on to build their own custom XPUs, and that’s pushed Broadcom’s AI business to new heights.

Mizuho’s Vijay Rakesh, who ranks amongst the top 1% of Street stock experts, is giving credit where credit is due. The analyst has raised his price target on AVGO to a new Street-high of $410 (up from $355), suggesting the shares will gain another 14% over the coming months. Rakesh’s rating stays an Outperform (i.e., Buy). (To watch Rakesh’s track record, click here)

“Post a strong earnings report and increased F26E AI revenue outlook, we continue to see upside in F26/F27/F28 (Oct) to the drivers of its AI portfolio and ScaleOut/Up Opportunity,” Rakesh noted.

The analyst points out that performance, power, packaging, bandwidth, and memory are all scaling rapidly, with each new generation pushing specs up by 30–150%. The MOVE to more advanced chip designs is driving demand for improved packaging and technology, enabling customers to achieve significantly higher performance and efficiency. And as chips get more complex, average selling prices should climb sharply – often rising 40–200% per generation. Google’s TPU, Meta’s MTIA Olympus, and OpenAI’s Titan are all showing two to three times better performance on roughly a one-year cycle, with Broadcom enabling “hardware performance with increasing complexity.”

Meanwhile, Broadcom is driving growth with its scale-out (adding more machines) and scale-up (making each machine more powerful) network switches, backed by a strong roadmap and efficient execution. The new Tomahawk Ultra switches deliver faster performance and lower latency, helping customers complete workloads more efficiently while reducing costs.

Rakesh expects AI revenue to grow at a CAGR of ~56% between fiscal 2025 and 2028 as new customers ramp up their XPUs and scale their operations, creating a potential 10x opportunity. Custom ASIC and XPU adoption is also set to rise, from around 40% in 2025 to over 60% by 2027.

As such, the analyst has raised his AI revenue estimates to $39 billion for 2026 (vs. consensus at $36 billion) and $60 billion for 2027 (consensus has $55 billion), while introducing a 2028 forecast of $75 billion (vs. the Street’s $62 billion forecast). The XPU ramp-ups and scale-up opportunities will drive this growth and should result in upside to the company’s previously noted $60–90 billion market opportunity from just three customers.

Most analysts agree with Rakesh’s thesis; based on a mix of 26 Buys vs. 2 Holds, the stock claims a Strong Buy consensus rating. (See)

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