Baird reiterated its buy recommendation for Broadcom (NASDAQ: AVGO) with a price target of $630, up from $575, citing accelerating AI-driven revenue growth. The stock last traded at $367.24, below InvestingPro’s fair value estimate.
The upgrade follows Broadcom’s fiscal third-quarter results, which beat Wall Street expectations with adjusted earnings per share of $3.32, exceeding forecasts of $3.21, and revenue of $29.59 billion, ahead of the $29.25 billion consensus. Year-over-year sales rose 86%, while gross margins remained at 76% and free cash flow reached a record $13.7 billion.
Broadcom’s AI revenue is projected to reach $115 billion in fiscal 2027 and double to $230 billion in fiscal 2028, according to company guidance. Baird’s $630 target implies significant upside from current levels, reflecting confidence in sustained growth driven by inference performance advantages and long-term partnerships with leading AI labs.
The company’s multi-year collaboration with Google, including the development of TPUs V8i and subsequent generations, positions it to benefit from industry-wide shifts toward inference-optimized architectures. Frontier AI labs are expected to become Broadcom’s two largest customers by fiscal 2027–2028.
Other analysts have also raised their targets: Barclays set a $500 target with an outperform rating, Mizuho maintained a $530 target, Bernstein lifted its target to $575, and TD Cowen assigned a $475 target with a buy rating. Broadcom’s market capitalization stands at $1.75 trillion, with trailing revenue growth of 32% over the last twelve months.
