Broadcom: Barclays Raises PT to $400 from $265, Maintains Overweight Rating

Broadcom: Barclays Raises PT to $400 from $265, Maintains Overweight Rating

In a significant move, Barclays has raised its price target on Broadcom Limited (NASDAQ:AVGO) to $400 from $265, while maintaining an Overweight rating on the stock [1]. The semiconductor giant, currently valued at $1.44 trillion, has demonstrated remarkable performance with a 102.58% return over the past year and is trading near its 52-week high of $317.35.

The upgrade comes on the heels of Broadcom's impressive third-quarter 2025 financial results, which exceeded analysts' expectations. The company achieved an earnings per share (EPS) of $1.69, surpassing the projected $1.66, and generated $16 billion in revenue, above the anticipated $15.82 billion. This strong performance is attributed to Broadcom's robust gross profit margins of 77.2% and a 28% year-over-year revenue growth.

Barclays cited a new ASIC (application-specific integrated circuit) customer expected to contribute in the second half of fiscal year 2026, likely adding approximately $5 billion each in the third and fourth fiscal quarters. The research firm also noted that Broadcom’s existing three core ASIC customers are performing better than expected and will likely exceed the company’s 60% year-over-year AI revenue target even before factoring in the new customer.

The firm highlighted that one of two potential customers is taping out chips through the end of this year with production potential next year, and mentioned the possibility of a fifth customer joining soon. Additionally, Broadcom is currently experiencing shortages of electro-absorption modulated lasers (EMLs), which explains transceiver constraints, and is doubling capacity over the next nine months.

The positive outlook from Barclays is echoed by several other analysts. Rosenblatt, Mizuho, Deutsche Bank, and JPMorgan have also raised their price targets on Broadcom, reflecting a growing confidence among financial institutions in the company’s strategic positioning and execution in the technology sector [2, 3, 4].

References:
[1] https://www.investing.com/news/analyst-ratings/barclays-raises-broadcom-stock-price-target-to-400-on-ai-growth-93CH-4226062
[2] https://www.investing.com/news/analyst-ratings/broadcom-stock-price-target-raised-to-400-from-340-at-rosenblatt-93CH-4226588
[3] https://www.investing.com/news/analyst-ratings/morgan-stanley-raises-broadcom-stock-price-target-on-ai-growth-outlook-93CH-4226066
[4] https://www.investing.com/news/analyst-ratings/bernstein-raises-broadcom-stock-price-target-to-400-on-ai-strength-93CH-4226652