Broadcom's analyst fair value target has risen to $523.73 following strong AI semiconductor earnings and a roadmap targeting more than $100b in AI revenue by fiscal 2027. The stock sell-off raised investor concerns about AI margin mix and valuation, even as multiple Wall Street firms raised price targets citing the company's advanced packaging capabilities and multi-year custom chip deals with major cloud providers and AI companies. However, some analysts worry that hyperscalers building their own chips and partnering with competitors could limit Broadcom's upside.
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Broadcom's analyst-derived fair value rose from $523.73 to $523.73, following the company's fiscal Q2 2026 earnings report that showed $10.8b in AI semiconductor revenue and guided Q3 revenue to $29.4b. CEO Hock Tan outlined an AI roadmap targeting more than $100b in AI semiconductor revenue by fiscal 2027, backed by a reported $73b AI backlog and multi-year custom ASIC deals with Google, Meta, OpenAI, and Anthropic.
Why it matters
Wall Street analysts are divided on Broadcom's prospects. Bullish firms—including JPMorgan, BofA, and KeyBanc—cite the company's advanced packaging dominance and strong AI order demand from hyperscalers as reasons for confidence. Bearish analysts such as Macquarie, however, argue that Google's push to design its own chips and work with MediaTek could reduce Broadcom's share of that business, and that the company's unchanged long-term AI targets fell short of investor expectations.
What to watch
Broadcom, Apollo, and Blackstone launched the AI XPV Platform, a $35b financing vehicle intended to support more than 20 GW of AI compute capacity through 2028, with Anthropic as an anchor customer. OpenAI and Broadcom also introduced Jalapeño, a custom AI inference chip designed in roughly nine months that early lab tests show has lower cost and improved performance per watt versus current high-end GPUs, with large-scale deployments planned from 2026.
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