An Earnings Beat Has Sent Broadcom's Stock Soaring. What Wall Street Analysts Predicts?

Broadcom Inc.’s latest quarterly results are winning praise on Wall Street, with several analysts boosting their price targets after the chipmaker delivered strong earnings, upbeat guidance, and a surprise $10 billion order from a new custom chip client.

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The company’s fiscal third-quarter report, released Thursday, topped expectations for both revenue and profit. Broadcom also offered optimistic guidance for the current quarter, reinforcing investor confidence in its ability to capitalize on surging demand for artificial intelligence hardware. Shares jumped more than 8% in premarket trading as the results circulated.

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JPMorgan’s Harlan Sur highlighted the company’s accelerating momentum.
“This performance sets Broadcom on pace to generate roughly $20 billion in AI revenue during fiscal 2025,” Sur wrote, pointing to the firm’s record $110 billion backlog and growing visibility into fiscal 2026 and 2027. He cited strong hyperscale spending, ongoing AI training and inference demand, Google’s ramp-up of its next-generation TPU accelerators, and new customer programs as key growth drivers.

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The mystery surrounding Broadcom’s newest client widely rumored to be OpenAI has fueled additional intrigue among investors, as the chipmaker works to capture market share from industry leader Nvidia.

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Here’s how major analysts reacted following the report:

Bank of America reiterated a buy rating and lifted its price target by $100 to $400.
Analyst Vivek Arya described Broadcom as his “top pick,” noting that the company’s custom AI chip (XPU) business continues to expand with a potential fourth large customer joining Google, Meta, and ByteDance.

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The $10 billion addition expected in the second half of fiscal 2026 could push AI revenue growth to 110% year over year, far higher than the prior 55–60% forecast. Arya added that even as Broadcom gains share, the AI market itself is growing rapidly, in line with Nvidia’s view of a multi-trillion-dollar opportunity.

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Barclays also maintained an overweight rating while raising its price target by $135 to $400.
Analyst Tom O’Malley emphasized that Broadcom’s core three ASIC customers are performing above expectations and could surpass the company’s 60% AI revenue growth target even without contributions from the new client.

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He also noted tightness in the supply of EMLs and transceivers, with Broadcom working to double capacity over the next nine months. “The company is firing on all cylinders with clear visibility into growth supported by a significant backlog,” O’Malley said.

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JPMorgan reiterated its overweight rating and increased its price target to $400 from $325.
Sur pointed to better-than-expected July quarter results, a strong October outlook, and stabilization in non-AI semiconductors, alongside steady momentum from VMware. He added that Broadcom’s diversified portfolio and ongoing product cycles provide a solid foundation for revenue growth.

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Morgan Stanley kept an overweight rating but nudged its target higher from $357 to $382.
Analyst Joseph Moore acknowledged only modest upside to the overall numbers but stressed the importance of Broadcom adding a fourth AI customer with $10 billion in incremental second-half revenue forecast.

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Moore flagged potential export restrictions for a Chinese customer but said Broadcom’s broader AI strategy remains firmly on track.

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Goldman Sachs reiterated a buy rating and raised its target by $20 to $360.
Analyst James Schneider said the most meaningful takeaway was the addition of a new custom silicon customer focused on inference workloads. That could deliver significant upside to management’s prior forecast of 60% AI revenue growth in 2026.

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Schneider also highlighted Broadcom’s leadership in custom compute and networking silicon, as well as its underappreciated enterprise software portfolio.

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Wells Fargo maintained an equal weight stance while lifting its target by $90 to $345.
Analyst Aaron Rakers described the quarter as another “beat-and-raise,” with notable strength in custom AI XPUs. The new $10 billion order should accelerate AI growth in both fiscal 2026 and 2027. Still, Rakers warned that high leverage and expectations for continued acquisitions create a balanced risk/reward profile that keeps Wells Fargo on the sidelines.

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Deutsche Bank reiterated a buy rating and bumped its price target by $50 to $350.
Analyst Ross Seymore said Broadcom’s report and guidance were “in line on the surface” but featured far more bullish commentary around AI. With non-AI semiconductors slowly improving and software revenue holding steady, he projects 40% revenue growth in fiscal 2026.

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Seymore also credited CEO Hock Tan who recently extended his contract through 2030 with providing steady leadership as Broadcom cements its role as a key player in AI compute and networking.

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Broadcom’s blockbuster quarter has only deepened investor optimism about its future in AI. While questions remain about its new customer and competitive positioning against Nvidia, Wall Street broadly agrees that the company’s massive backlog, growing custom chip business, and expanding customer base place it in a strong position heading into the second half of the decade.

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