Key Takeaways:
- Broadcom Inc. (AVGO, Financial) forecasts substantial revenue growth from AI semiconductors.
- Analysts present mixed price targets for AVGO, with an average suggesting a potential downside.
- Despite strong performance, Broadcom's GF Value indicates a significant downside relative to current prices.
Broadcom Inc. (AVGO) has set ambitious revenue projections, anticipating $5.1 billion from AI semiconductors in the third quarter of 2025. This optimistic forecast comes on the heels of growing demand within the AI networking industry. However, despite outperforming expectations with its latest quarterly results and guidance, the stock has recently witnessed a decline.
Wall Street Analysts' Perspective
According to insights from 36 Wall Street analysts, Broadcom Inc. (AVGO, Financial) is projected to have an average one-year price target of $243.29. The forecasts vary significantly, with the highest estimate at $301.15 and the lowest at $171.60. This average price target implies a potential downside of 6.40% from the current trading price of $259.93. For a deeper dive into these estimates, visit the Broadcom Inc. (AVGO) Forecast page.
The consensus among 42 brokerage firms rates Broadcom Inc.'s stock at an average brokerage recommendation of 1.8, which is indicative of an "Outperform" status. The rating scale ranges from 1, denoting a Strong Buy, to 5, indicating a Sell.
GuruFocus Fair Value Estimation
From a valuation standpoint, GuruFocus offers a GF Value for Broadcom Inc. (AVGO, Financial) of $150.28 over the coming year. This suggests a notable downside of 42.18% from the current price of $259.93. The GF Value is a critical metric that estimates the fair trading value of a stock. It combines historical trading multiples with projected business growth and performance metrics. For additional insights, visit the Broadcom Inc. (AVGO) Summary page.
