Key Stats for AVGO Stock
- This-Week Performance: 7%
- 52-Week Range: $241 to $449
- Valuation Model Target Price: around $1,190
- Implied Upside: around 167%
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What Happened?
Broadcom Inc. stock rose about 7% this week, finishing near $447 per share as investors continued to reward one of the market’s clearest AI infrastructure winners ahead of its June 3 earnings report. Shares also touched a new 52-week high near $449, putting Broadcom in the same AI data center conversation as Nvidia, AMD, Marvell, Arista Networks, and Cisco as investors look for companies that can benefit from another year of heavy AI spending in 2026.
The stock moved higher this week because fresh analyst support gave investors more confidence that Broadcom’s AI semiconductor growth can keep compounding. Wells Fargo raised its price target to $545 from $430, TD Cowen lifted its target to $500 from $405, UBS raised its target to $490 from $475, and Susquehanna raised its target to $490 from $450. Those updates reinforced the market’s main Broadcom thesis: demand for custom AI accelerators, AI networking chips, and large cloud customer deployments remains stronger than expected.
Broadcom’s recent Q1 2026 earnings call also gave the rally more substance. Revenue reached a record $19.3 billion, up 29% year over year, adjusted EBITDA hit a record $13.1 billion, and AI semiconductor revenue jumped 106% to $8.4 billion. CEO Hock Tan said, “Our AI revenue growth is accelerating,” as Broadcom guided for Q2 revenue of about $22 billion, including AI semiconductor revenue of $10.7 billion, up about 140% year over year.
Recent product news kept Broadcom in focus heading into earnings because the company is expanding beyond one AI chip cycle. Broadcom announced a Samsung fixed wireless access reference design that combines Broadcom’s Wi-Fi 8 system-on-chip with Samsung’s 5G modem, while its 50G PON Edge AI gateway chip is designed to bring faster fiber broadband, lower latency, and on-device AI processing to homes and networks. Together, the analyst target hikes, strong AI results, and new connectivity launches gave investors a clearer reason to keep buying the stock this week.
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Is Broadcom Undervalued?
Under valuation assumptions, the stock is modeled using:
- Revenue Growth (CAGR): around 48%
- Operating Margins: around 69%
- Exit P/E Multiple: around 30x
Broadcom’s valuation depends on whether its AI semiconductor business can keep scaling through custom AI accelerators, which are chips built for specific large cloud customers, and AI networking chips, which help move data quickly between thousands of processors inside massive data centers.
VMware gives Broadcom another important lever because it adds high-margin infrastructure software that helps enterprises run private cloud environments across CPUs, GPUs, storage, and networking.
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The next 12 months will likely come down to AI revenue momentum, new custom silicon wins, VMware integration progress, and whether Broadcom continues gaining share against Nvidia, Marvell, AMD, Arista Networks, and Cisco in custom chips, networking, and data center connectivity.
Based on these inputs, the model estimates a target price of around $1,190, implying about 167% total upside, indicating the stock appears undervalued if Broadcom can keep turning AI demand and VMware software scale into higher earnings power.
At current levels, Broadcom Inc. appears undervalued, with future performance driven by AI accelerator demand, AI networking growth, VMware margin expansion, and continued execution with large cloud and enterprise customers.
How Much Upside Does Broadcom Stock Have From Here?
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- Revenue Growth
- Operating Margins
- Exit P/E Multiple
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