
Broadcom (AVGO) Stock Forecast & Price Target
Broadcom (AVGO) Analyst Ratings
Bulls say
Broadcom has demonstrated robust financial performance, with AI semiconductor revenue reaching $6.5 billion in the most recent quarter, reflecting a year-over-year growth of 74%, and is projected to continue this upward trajectory with forecasts suggesting revenue could rise to $8.2 billion in the upcoming quarter. The company's overall revenue guidance for the January quarter estimates $19.1 billion, marking a 28% increase year-over-year, while operating margins have strengthened, with the semiconductor operating margin increasing to 59%, up 250 basis points compared to the previous year. Additionally, Broadcom's consolidated backlog has surged to $162 billion, buoyed by strong demand for both AI and infrastructure software, indicating significant long-term revenue potential.
Bears say
Broadcom’s guidance indicates a concerning 100 basis points quarter-over-quarter decline in gross margins, largely attributed to growth in its lower-margin XPU business. Additionally, while broadband revenue has shown recovery, the company’s non-AI semiconductor revenue was flat year-over-year, and other markets experienced sequential declines, resulting in a potentially weakened cash flow. The combination of stagnant growth in key sectors and anticipated declines in non-AI revenue raises concerns about Broadcom's financial resilience and overall market position.
This aggregate rating is based on analysts' research of Broadcom and is not a guaranteed prediction by Public.com or investment advice.
Broadcom (AVGO) Analyst Forecast & Price Prediction
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