Broadcom's Price Target Raised Amid AI Revenue Optimism
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 31 2026
0mins
Should l Buy AVGO?
Source: Yahoo Finance
Broadcom Inc (AVGO) saw its stock price drop by 5.00% as it crossed below the 5-day SMA, reflecting a challenging market environment.
The decline comes despite a recent price target upgrade from Wells Fargo, which raised Broadcom's target from $410 to $430 and upgraded its rating to Overweight. Analysts have also increased revenue forecasts for 2026 and 2027, indicating strong expectations for AI-driven revenue growth, particularly in AI Compute and Networking segments. This optimism contrasts with the broader market's downturn, where the Nasdaq-100 and S&P 500 fell by 1.47% and 1.44%, respectively, suggesting sector rotation may be influencing Broadcom's stock performance.
The implications of this news suggest that while Broadcom faces short-term price pressures, the long-term outlook remains positive due to anticipated growth in AI-related revenues, which could stabilize and eventually boost its stock price.
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Analyst Views on AVGO
Wall Street analysts forecast AVGO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AVGO is 462.58 USD with a low forecast of 390.00 USD and a high forecast of 525.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
28 Analyst Rating
27 Buy
1 Hold
0 Sell
Strong Buy
Current: 310.510
Low
390.00
Averages
462.58
High
525.00
Current: 310.510
Low
390.00
Averages
462.58
High
525.00
About AVGO
Broadcom Inc. is a global technology firm that designs, develops, and supplies a range of semiconductors, enterprise software and security solutions. The Company operates through two segments: semiconductor solutions and infrastructure software. Its semiconductor solutions segment includes all of its product lines and intellectual property (IP) licensing. It provides a variety of radio frequency semiconductor devices, wireless connectivity solutions, custom touch controllers, and inductive charging solutions for mobile applications. Its infrastructure software segment includes its private and hybrid cloud, application development and delivery, software-defined edge, application networking and security, mainframe, distributed and cybersecurity solutions, and its FC SAN business. It provides a portfolio of software solutions that enable customers to plan, develop, automate, manage and secure applications across mainframe, distributed, mobile and cloud platforms.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Capital Expenditure Driving Price Increases: With big tech expected to spend over $500 billion on AI infrastructure, shortages in HBM solutions are anticipated, with TrendForce research suggesting DRAM and NAND prices could soar by 60% and 38%, respectively, in Q1 alone.
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- Surging Memory Demand: Micron's management forecasts that the memory market will grow from $35 billion in 2025 to $100 billion by 2028, indicating a much faster acceleration in demand for memory chips compared to the GPU market.
- Capex Driving Price Increases: Big tech is expected to spend over $500 billion on AI infrastructure this year, leading to shortages in high-bandwidth memory (HBM) solutions, with TrendForce research suggesting DRAM and NAND chip prices could soar by 60% and 38%, respectively, in Q1 alone.
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See More
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