Analyst raises AVGO price target citing strong demand for networking and ASICs, with 8.6% upside potential ahead of earnings.
Morgan Stanley increased its price target for Broadcom (AVGO) to $485 from $470, maintaining an Overweight rating ahead of its June 3, 2026, earnings report. The firm expects continued growth in AI-driven segments, particularly networking and application-specific integrated circuits (ASICs).
Broadcom reported record revenue of $19.3 billion in its fiscal first quarter, up 29% year-over-year, with AI semiconductor revenue surging 106% to $8.4 billion. Adjusted EBITDA reached $13.1 billion, or 68% of revenue, while management guided for $22.0 billion in second-quarter revenue, implying 47% growth.
The analyst also noted Broadcom is likely to retain a majority share of the Tensor Processing Unit (TPU) market, reinforcing its position in AI infrastructure.