Goldman Reaffirms Buy on Broadcom as OpenAI-Focused AI Chip Outlook Strengthens
The bank cites a planned 10GW rollout of custom accelerators beginning in 2026 that could enhance revenue visibility into FY26–FY27.
Overview
- On October 13, Goldman Sachs analyst James Schneider reiterated a Buy on Broadcom and raised the price target to $380.
- Schneider pointed to a reported collaboration with OpenAI involving co-developed systems using Broadcom accelerators and Ethernet solutions.
- Deployments tied to that effort are anticipated to start in the second half of 2026 and run through the end of 2029, according to the analyst.
- Goldman said the plan supports Broadcom’s leadership in custom silicon and could provide strong margins and clearer earnings visibility in FY26 and FY27.
- Polen Capital disclosed it initiated a Broadcom position in August, calling the company a leading provider of custom chips as AVGO shares rose about 80% over the past six months.