Broadcom’s AI semiconductor sales surged to $10.8 billion, with Q3 guidance at $16 billion, driving bullish analyst targets.
Broadcom reported a 143% year-over-year increase in AI semiconductor revenue, reaching $10.8 billion, with management guiding Q3 revenue to $16 billion. The company cited strong demand visibility through 2028, positioning it as a key supplier for hyperscale AI buildouts, including Google TPUs and Meta MTIA accelerators.
Despite the growth, Broadcom’s stock trades at $392.99, 34% below the Wall Street average price target of $527.88. The stock has declined 6.43% over three months, dropping from a 52-week high of $494.18. Q2 fiscal 2026 revenue rose 47.9% YoY, with non-GAAP EPS of $2.44 beating estimates of $2.40.
Analysts remain bullish, with BNP Paribas Exane setting a Street-high $675 target, implying 72% upside. 92% of covering analysts rate the stock Buy or Strong Buy, with no Sell ratings. Investor concerns focus on whether AI growth can sustain into 2027 amid broader AI-capex sentiment shifts.