Key Stats for Broadcom Stock
- 52-Week Range: $226 to $442
- Current Price: $411
- Street Mean Target: $478
- Street High Target: $630
- Analyst Consensus: 36 Buys / 7 Outperforms / 3 Holds / 5 No Opinions
- TIKR Model Target (Oct. 2030): $1,309
Broadcom Stock Locks In Six AI Customers and Charts a Course to $100 Billion
Broadcom Inc. (AVGO) designs custom AI accelerator chips and infrastructure software, and its Q1 fiscal 2026 results delivered a decisive signal: this is no longer a story about one large customer.
Total revenue hit a record $19.31 billion in the quarter ended February 2, 2026, up 29.5% year-on-year, with AI semiconductor revenue alone surging 106% to $8.4 billion.
CEO Hock Tan disclosed a sixth AI customer on the Q1 2026 earnings call, adding OpenAI to a roster that already includes Google, Meta, Anthropic, and two undisclosed hyperscalers, with OpenAI expected to deploy its first-generation custom accelerator at over 1 gigawatt of compute capacity in 2027.
That roster is not a list of transactional buyers.
Broadcom extended its partnership with Meta in April to produce custom MTIA chips through 2029, with an initial commitment exceeding 1 gigawatt in what the companies called “the first phase of a sustained, multi-gigawatt rollout.”
In the same month, Broadcom and Google locked in a long-term TPU and networking supply agreement running through 2031, with Anthropic separately securing access to 3.5 gigawatts of TPU AI capacity from 2027 onward.
Each of these deals is structured as a multi-year supply contract, not a purchase order, and Broadcom has already secured leading-edge wafer capacity, high-bandwidth memory, and substrate commitments through 2028 to back them.
On the Q1 call, Tan delivered the line that reframed the entire investment case: “Today, in fact, we have line of sight to achieve AI revenue from chips, just chips, in excess of $100 billion in 2027.”
Meanwhile, Broadcom’s Q2 FY2026 guidance of approximately $22 billion in revenue (up 47% year-on-year) and $10.7 billion in AI semiconductor revenue (up 140% year-on-year) suggests that ramp is already underway.
Broadcom Draws 43 Bullish Ratings as Six-Customer AI Pipeline Comes Into Focus
The analyst picture on Broadcom stock is as clean as it gets for a large-cap semiconductor name.
As of May 19, 43 analysts carry a Buy or Outperform rating, with just 3 Holds and no Sells, and a Wall Street mean price target of around $478, implying roughly 16% upside from the current price of $411.07.
The thesis Wall Street is underwriting is not AI exposure in the abstract; it is the durability and depth of six locked-in, multi-year custom silicon partnerships that are each scaling from gigawatts to multi-gigawatt deployments over the next two years.
Revenue consensus for the quarter ending April 30, 2026 sits at around $22 billion, up 47% year-on-year, and the trajectory steepens sharply through fiscal 2026: analysts project revenue of around $29 billion for the July quarter (up roughly 81% year-on-year) and around $33 billion for October (up around 86% year-on-year).
EBITDA is tracking with equal conviction, with consensus estimates pointing to around $15 billion for the April quarter and around $20 billion for July, with EBITDA margins holding at approximately 69% across the forecast period.
The networking angle is worth isolating.
Broadcom’s AI networking revenue grew 60% year-on-year in Q1 and is projected to represent 40% of total AI revenue in Q2, driven by the Tomahawk 6 switch (the only 100 terabit-per-second switch commercially available) and 200G SerDes technology that hyperscalers are deploying for both XPU and GPU cluster architectures.
The combination of compute silicon and networking infrastructure creates a compounding attachment rate: every new gigawatt of compute deployed by a Broadcom XPU customer also requires Broadcom networking to connect it.
Infrastructure Software, often discounted in the AI narrative, added $6.8 billion in Q1 with VMware Cloud Foundation bookings exceeding $9.2 billion in total contract value for the quarter, sustaining 19% annual recurring revenue growth year-on-year.
Broadcom stock looks undervalued at the current price given a mean Street target of $478 against a business generating triple-digit AI revenue growth with six locked-in multi-year supply commitments and a $100 billion chip revenue forecast for 2027.
Broadcom’s TIKR Valuation Model: Line of Sight to $1,309 Per Share
TIKR’s mid-case model values Broadcom at around $1,309 per share by fiscal year-end 2030, anchored to a revenue CAGR of approximately 28% and a net income margin of roughly 55% over the forecast period, assumptions grounded directly in the six-customer AI deployment roadmap Hock Tan outlined on the Q1 call.
At around $411 per share with a mid-case IRR of roughly 24% per year over the next 4.4 years, Broadcom stock is undervalued relative to a business with unprecedented multi-year revenue visibility and an AI chip pipeline that no direct competitor currently replicates at scale.
The low case targets around 18% annualized returns, assuming one or more XPU partnerships scale slower than guided and margins hold flat near 51%.
The mid case, TIKR’s base scenario, targets roughly 24% annualized returns with margins expanding toward 55% as the six-customer deployment roadmap executes on schedule through 2027.
The high case reaches around 29% annualized returns, requiring OpenAI’s full 10-gigawatt pipeline to accelerate, Tomahawk 7 to extend Broadcom’s networking lead, and VMware to stabilize software revenue underneath the AI semiconductor ramp.
Across all three scenarios, the spread is not about demand collapsing; it is about how fast six strategically committed partners scale compute capacity they have already agreed to build.
Is Broadcom stock a buy right now?
43 analysts rate AVGO a Buy or Outperform with a mean Street target of around $478, implying roughly 16% upside from the current price of $411.
TIKR’s mid-case model extends that view significantly further, valuing Broadcom stock at around $1,309 per share by fiscal year-end 2030 at an annualized return of roughly 24%.
The key variable is whether six locked-in XPU partnerships execute on schedule through fiscal 2027.
What is Broadcom’s revenue growth forecast?
Consensus estimates project Broadcom revenue of around $22 billion for the April 2026 quarter (up approximately 47% year-on-year), accelerating to around $29 billion in July (up roughly 81%) and around $33 billion in October (up around 86%).
Full fiscal 2027 estimates point to quarterly revenue in the $36 billion to $38 billion range as the six-customer XPU deployment ramp moves toward Tan’s stated target of near 10 gigawatts of compute shipped that year.
Should You Invest in Broadcom Inc.?
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