Wells Fargo Just Hiked Broadcom Price Target to $545: AI Semi Revenue Running 30-40% Higher Than Expected Quick Read – Wells Fargo raised its Broadcom (AVGO) price target to $545 from $430, driven by a new model showing AI chip demand may be running 30-40% higher than consensus…
pectations. – Wells Fargo’s framework ties AI chip demand directly to physical data center power capacity rather than traditional market sizing, implying Wall Street has been systematically underestimating the scale of the AI infrastructure buildout. – The analyst who called NVIDIA in 2010 just named his top 10 stocks and Broadcom wasn’t one of them. Get them here FREE
Wells Fargo just delivered one of the most dramatic large-cap semiconductor revisions of the year, raising its price target on Broadcom (NASDAQ:AVGO) to $545 from $430 while maintaining an Overweight rating. The driver is a new “pluggable gigawatt-driven” framework that ties AI silicon demand to physical data center power capacity, implying AI semiconductor revenue is running 30% to 40% higher than prior consensus. The firm also lifted its fiscal 2027 revenue and EPS estimates for Broadcom by 22% and 19% versus consensus, and its fiscal 2028 figures by 28% and 23%.
Broadcom stock traded up 5% to $438 following the call. The Analyst’s Case Wells Fargo’s new model estimates AI chip demand based on hyperscaler power capacity rather than traditional top-down market sizing. Applied to Broadcom, it captures custom AI accelerator (XPU) shipments tied to Alphabet’s (NASDAQ:GOOGL) Google TPU program, Meta Platforms’ (NASDAQ:META) MTIA effort, and other gigawatt-scale buildouts.