Analysts Raise Broadcom Targets on Accelerating AI Demand

Wells Fargo calls the recent share dip a buying opportunity, projecting stable margins despite a higher mix of systems.

Overview

Wells Fargo upgraded Broadcom to Overweight from Equal Weight with a $430 price target after a 4.2% drop on Jan. 14, citing clearer AI catalysts through 2026.
Citi maintained a Buy rating with a $480 target, pointing to strengthening AI-driven sales as the key driver of its outlook.
RBC initiated at Sector Perform with a $370 target, flagging uncertainty around the timing and durability of opportunities tied to Anthropic and OpenAI.
Wells Fargo lifted revenue forecasts, now modeling AI semiconductor sales of $52.6 billion in 2026 and $93.4 billion in 2027, and expects semiconductor gross margin near 65% with ~65%+ EBITDA margins.
Recent results underpin the optimism, with Q4 fiscal 2025 revenue up 28% to $18.02 billion, AI semiconductor revenue up 74%, and guidance for Q1 fiscal 2026 AI semiconductor revenue to double to $8.2 billion.