Broadcom (AVGO, Financials) received a price target boost from Citi ahead of its second-quarter fiscal 2026 earnings, scheduled for release after the market closes on Thursday, June 5. Analyst Christopher Danely raised the target to $276 from $210, maintaining a Buy rating and citing strength in Broadcom’s artificial intelligence segment as a key driver. The updated target suggests roughly 11% upside from current levels.
Wall Street expects Broadcom to post second-quarter earnings per share of $1.57, marking a 43% increase year over year. Revenue is projected to rise 20% to $14.96 billion. AI-related revenue is expected to contribute 30% of the company’s overall sales in fiscal 2025, according to Citi. Danely also highlighted that while Broadcom’s non-AI semiconductor segment remains 40% below peak levels, a recovery there could help offset the gross margin dilution stemming from AI investments.
AVGO stock has rallied more than 87% over the past year, lifted by demand for its custom AI chips, known as application-specific integrated circuits. Despite broader macroeconomic uncertainties and tariff concerns, analysts remain optimistic on Broadcom’s prospects.
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