Analysts from major Wall Street banks have increased their confidence in Broadcom’s stock following the chipmaker’s strong quarterly earnings report. Despite a 2% dip in shares pre-market trading due to a weaker forecast for non-AI semiconductor revenue, Broadcom reported solid growth in its artificial intelligence business.
The company beat analysts’ estimates with adjusted earnings per share of $1.58 on revenue of $15 billion. It also gave strong guidance for the current quarter and announced plans to generate $5.1 billion in AI chip sales in its fiscal third quarter.
Analysts across the board praised Broadcom’s long-term growth potential, citing a well-positioned networking business and continued demand for AI solutions. The company’s stock has soared 45% over the past three months, with some analysts predicting an additional 15% gain.
“AVGO is likely to win on multiple fronts as hyperscaler customers look to create large heterogeneous compute clusters,” said UBS analyst Timothy Arcuri.
The majority of analysts maintained a bullish outlook for Broadcom, with Bank of America and Wells Fargo issuing equal-weight ratings. Deutsche Bank upgraded its price target from $205 to $270, while Bank of America lifted its target from $240 to $300.
Overall, Broadcom’s strong earnings report has reinvigorated confidence in the stock, despite some cautionary notes on the company’s non-AI business.
Source: https://www.cnbc.com/2025/06/06/heres-what-wall-street-has-to-say-about-broadcoms-second-quarter-results.html