Are Wall Street Analysts Predicting Broadcom Stock Will Climb or Sink?

With a market cap of $2 trillion, Broadcom Inc. (AVGO) is a leading global technology company that designs, develops, and supplies a wide range of semiconductor and infrastructure software solutions. Its products power applications across enterprise and data center networking, broadband access, smartphones, industrial systems, and cybersecurity.

Shares of the technology giant have outperformed the broader market over the past 52 weeks. AVGO stock has surged 38.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 21.6%. In addition, shares of the company are up 21.5% on a YTD basis, compared to SPX's 13.2% gain.

However, the chipmaker stock has lagged behind the State Street Technology Select Sector SPDR ETF's (XLK) 41.3% return over the past 52 weeks and 29.6% YTD increase. 

Broadcom has outperformed the SPX due to surging demand for custom AI accelerators and high-speed Ethernet networking, alongside strong cash flow and VMware integration.

Nevertheless, the stock tumbled 12.6% following its Q2 2026 results on Jun. 3 after the company reported weaker-than-expected Q2 revenue of $22.19 billion and projected Q3 AI chip revenue of $16 billion. Investor sentiment was further dampened as the management maintained the company's long-term 2027 AI chip sales opportunity at $100 billion, despite raising expected AI chip shipments to more than 10 gigawatts, disappointing investors who had anticipated an upward revision to the revenue outlook. 

Although Broadcom forecast better-than-expected strong Q3 total revenue of approximately $29.4 billion, investors reacted negatively to the earnings miss and lack of an upgraded long-term AI revenue forecast.

For the fiscal year ending in October 2026, analysts expect AVGO's EPS to climb 81.9% year-over-year to $10.24. The company's earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing on another occasion.

Among the 41 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 32 “Strong Buy” ratings, three “Moderate Buys,” and six “Holds.”

This configuration is less bullish than three months ago, with 35 “Strong Buy” ratings on the stock.

On Jun. 4, BofA Securities raised its price target for Broadcom to $530 and maintained a “Buy” rating.

The mean price target of $519.35 represents a 23.7% premium to AVGO’s current price levels. The Street-high price target of $675 suggests a 60.8% potential upside.