Key Takeaways:
- Broadcom (AVGO, Financial) anticipates continued revenue growth in Q3, driven by strong AI semiconductor demand.
- Analysts offer mixed signals, with a consensus rating of "Outperform," but some forecast a significant downside.
- GuruFocus metrics suggest Broadcom may be overvalued based on historical trading multiples.
Broadcom Inc. (AVGO) recently experienced a 2.9% decline in after-hours trading, despite surpassing fiscal Q2 earnings and revenue expectations. The company's Q2 revenue surged by 20.1%, reaching $15 billion, largely fueled by the growing demand for AI semiconductors. Looking ahead to Q3, Broadcom forecasts a revenue of $15.8 billion, indicating a consistent growth path.
Wall Street Analysts' Outlook
According to projections from 36 analysts, the average one-year price target for Broadcom Inc. (AVGO, Financial) stands at $243.29. This suggests a potential downside of 6.40% from its current trading price of $259.93. The highest estimate reaches $301.15, while the lowest is $171.60. For a comprehensive view of price targets, please visit the Broadcom Inc (AVGO) Forecast page.
Consensus and Analyst Recommendations
The consensus from 42 brokerage firms assigns an average recommendation of 1.8 for Broadcom Inc. (AVGO, Financial), indicating an "Outperform" status. This recommendation scale ranges from 1, meaning Strong Buy, to 5, indicating Sell.
GuruFocus Valuation Insight
According to GuruFocus metrics, the estimated GF Value of Broadcom Inc. (AVGO, Financial) in one year is calculated to be $150.28. This projection suggests a potential downside of 42.18% from its current market price of $259.93. The GF Value is derived from the historical trading multiples of the stock, past growth, and anticipated future performance. More insights are available on the Broadcom Inc (AVGO) Summary page.
