HSBC raises Broadcom’s fiscal 2026 ASIC revenue estimate to $46 billion, 23% above consensus, driving a price target increase.
HSBC increased Broadcom’s (AVGO) price target to $600 from $450, citing a sharp upward revision in custom AI chip revenue projections. The firm now expects fiscal 2026 ASIC revenue of $46 billion, 23% above Street estimates, and $100.2 billion for fiscal 2027, 26% higher than consensus.
Broadcom’s stock has surged 39.43% year-to-date and 95.20% over the past year, trading near all-time highs at $488. The revision reflects accelerating demand for Broadcom’s custom AI accelerators, supported by partnerships with major tech firms like Google and Meta.
The upgrade underscores a broader reassessment of AI infrastructure investment, positioning Broadcom as a key beneficiary of the sector’s rapid growth.