Analyst cites Broadcom’s expanding AI chip partnerships and $500 billion revenue potential through 2031 as key drivers.
Jefferies analyst Blayne Curtis maintained a Buy rating on Broadcom (AVGO) with a $550 price target, citing strong momentum in the company’s AI chip business. The outlook includes projected earnings per share of $30 to $40 for FY2028, supporting a 10x valuation multiple.
Broadcom’s custom Tensor Processing Units, co-designed with Google, now have a long-term agreement extending to 2031, guaranteeing minimum revenue and potential upside of over $500 billion. The partnership’s expansion and diversification beyond Google, including a new deal with OpenAI, signal reduced reliance on a single customer.
The analyst highlighted Broadcom’s broadening customer base for application-specific integrated circuits, such as the Jalapeno chip developed with OpenAI for large language model inference workloads. This diversification strengthens the company’s position in the AI chip market.