Mizuho Securities reaffirmed its Outperform rating on Broadcom Limited (NASDAQ: AVGO) with a raised price target of $530, up from the prior $500, citing accelerating AI revenue and robust financial performance. The upgrade follows Broadcom’s third-quarter results, which exceeded analyst expectations on both earnings and revenue.
Broadcom reported adjusted earnings of $3.32 per share, beating the consensus forecast of $3.21, while revenue reached $29.59 billion against expectations of $29.25 billion. The company attributed the 86% year-over-year sales growth to surging demand for AI chips, alongside a record free cash flow of $13.7 billion. Shares closed at $367.24 on September 2, with after-hours trading at $362.28.
Analysts at Bernstein increased their price target to $575, while TD Cowen trimmed its target to $475, both maintaining positive or positive-leaning ratings. The Wall Street consensus price target stands at $675, the highest among tracked firms.
Broadcom’s AI revenue totaled $21.7 billion in the October quarter, a 30% increase from the prior quarter, and the company projects AI sales of $115 billion for fiscal 2027 and $230 billion for fiscal 2028, representing 100% year-over-year growth in both years. Gross profit margins over the past twelve months reached 76%, underscoring the company’s pricing power in high-demand segments.
For the fourth fiscal quarter of 2026, Broadcom guided revenue to $34.8 billion with an operating margin of 66%. Supply constraints persist in areas such as LPS, memory, and advanced packaging, though the company highlighted progress in networking and product technologies, including the TH Ultra for scale-up and the TH7 200T switch, which has passed the tape-out phase. The v8i product is now in the shipping phase.
Mizuho expects Broadcom to retain the majority of Google’s TPU volumes, while key AI infrastructure clients such as Anthropic, OpenAI, and Meta are projected to drive significant XPU acceleration demand. Anthropic and OpenAI are anticipated to become the largest XPU customers over time, with Anthropic targeting approximately 16 gigawatts and OpenAI exceeding 6 gigawatts in planned deployments.
Broadcom’s market capitalization stands at $1.75 trillion, reflecting its dominant position in AI-enabling semiconductor solutions amid a broader industry shift toward accelerated computing.
