As Shares Fall, Analyst Are Boosting their Broadcom Price Targets

Key Points

• Broadcom took a hit after its most recent earnings report, giving up big time gains achieved before the report.
• However, the vast majority of Wall Street analysts did anything but lower their expectations.
• Notably, one key analyst massively increased their target despite asking a question that contributed to the sell-off.

Broadcom’s NASDAQ: AVGO latest earnings report was a blow to highly bullish investors who bid up shares drastically going into the release. In the seven days leading up to Broadcom's report, shares gained more than 15%, pushing them to never-before-seen levels exceeding $475.

In contrast, Broadcom shares are down about 20% since the report, having dropped as low as $375. This came despite Broadcom posting beats on sales and adjusted earnings per share (EPS) and providing total guidance that was better than expected.

However, artificial intelligence (AI) semiconductor sales guidance for Q3 fiscal 2026 (FY2026) and fiscal year 2027 (FY2027) fell short of very high expectations. (Note that Broadcom’s fiscal reporting period is slightly ahead of the standard reporting period used by many companies.)

Nonetheless, investors may be able to take solace in the fact that Broadcom’s report did little to deter the bullish sentiment among Wall Street analysts. In fact, analysts overwhelmingly moved their targets to the upside—a clear sign of confidence despite investor disappointment.

Analyst Price Targets Rise in Wake of Post-Earnings Plummet

The MarketBeat consensus price target on Broadcom sits near $490, a figure that implies solid upside of more than 20%. However, analysts by and large raised their price targets after the report. Overall, MarketBeat tracked just one analyst who lowered their target in response: Timothy Arcuri of UBS Group, whose target fell by just $5 to $485. In contrast, more than 10 analysts increased their target.

Among all targets updated after Broadcom’s report, the average was around $515—considerably more optimistic than the consensus forecast. This updated average implies upside in the range of 30% and signals an expectation that shares could move well beyond past all-time highs.

Updated price targets on Broadcom do have a somewhat wide range; the lowest updated targets come from both DA Davidson and Royal Bank of Canada at $400. Despite this, both firms increased their targets, doing so by 6.7% and 11.1%, respectively. Meanwhile, Harlan Sur at JPMorgan Chase & Co. increased his target by 16%, moving the figure up to $580, the most bullish among post-earnings updates.

When it comes to ratings, analysts are also overwhelmingly showing confidence in Broadcom. The stock now retains zero Sell ratings, three Hold ratings, and a whopping 30 Buy ratings.

JPMorgan’s Question Hits Shares While Its Price Target Soars

Notably, Harlan Sur asked a key question on Broadcom’s earnings call, seeking to get the semiconductor company to raise its FY2027 AI outlook. Interestingly, though the answer contributed to Broadcom’s sell-off, Sur himself drastically increased his price target.

After two quarters in FY2026, Broadcom generated $19 billion in AI revenue and is guiding for $56 billion for the full year. This implies $37 billion over the two final quarters of FY2026. For FY2027, Broadcom is guiding for full-year AI semiconductor revenue of over $100 billion. Together, this brings the company’s 18-month AI revenue guidance to $137 billion—with the $37 billion portion in the second half of FY2026 firmly solidified.

The goal of Sur’s question was to get Broadcom to raise the FY2027 portion. Sur said, “Just given the strength of all your programs… is it fair to assume that your 18-month AI backlog second half of this year to first half through all of fiscal '27 sits at $200 billion or better?”

Here, Sur is asking Broadcom if its 18-month AI revenue backlog actually sits at $200 billion or higher. If Broadcom said yes, it would be implicitly adding $63 billion in backlog to its 18-month $137 billion guidance ($137 billion + $63 billion = $200 billion). Given that the $37 billion figure for the rest of FY2026 is firmly in place, the $63 billion addition would have to be allocated to FY2027.

Ultimately, Hock Tan did not agree to Sur’s framing, holding the company’s FY2027 AI outlook at over $100 billion. Still, Tan did note that Broadcom “will exceed very easily $100 billion in 2027." Overall, Sur’s attempt to get Broadcom to concretely raise its FY2027 outlook failed—contributing to investor disappointment and the stock’s big drop.

Sur and Other Analysts Walk Away Feeling More Confident in Broadcom

The answer to Sur’s question was a key reason why Broadcom shares sold off, as investors wanted the company to increase its AI guidance. While this clearly disappointed the market, Sur’s own reaction to Broadcom’s report showed anything but disappointment. Sur issued a huge price target increase and now has one of the highest targets of any analyst covering the stock.

That is something worth taking notice of—the analyst scrutinizing this name closely walked away with a much greater level of confidence. Furthermore, general price target moves clearly showed that Wall Street analysts became more bullish after the report. Overall, these factors point to a continuation of Broadcom’s positive outlook, despite post-earnings volatility.