EL7.AI
StocksMediumUpdated•Originally published 3 September 2026•Updated 3 September 2026•
2 min read

Broadcom Shares Surge on Record Revenue Beat as Bernstein Lifts Target to $575

Key Facts

1Broadcom expects AI semiconductor revenue to surge from $58 billion in FY2026 to approximately $230 billion by FY2028.
2Q3 AI revenue increased 221% to $16.7 billion.
3Broadcom's operating margin reached 67.9% despite an unfavorable product mix.

In a move reflecting the company's growing dominance in the AI semiconductor market, Broadcom reported record financial results that exceeded Wall Street expectations, prompting analysts to upwardly revise their price targets. According to reports, the company posted quarterly net revenue of $29.59 billion, beating estimates of $29.24 billion, driven by massive demand for data center technologies. Furthermore, the firm generated a robust $13.67 billion in free cash flow, with non-GAAP operating income reaching $20.10 billion.

On the valuation front, Bernstein raised its price target for Broadcom stock from $550 to $575 while maintaining an 'Outperform' rating, bolstering confidence in the company's roadmap to achieve $230 billion in AI revenue by 2028. This optimism coincides with resilient operational performance, as the company maintained high margins despite logistics challenges. Per market data, this earnings beat positions Broadcom favorably against peers in the custom silicon and high-speed networking sectors.

Regarding price action, AVGO closed at $367.24 (as of September 02, 2026), with investors now eyeing the market's reaction to the new $575 price target. With the economic calendar showing no major technology-specific catalysts for the next seven days, traders will likely monitor resistance near the previous session high of $371.09 as a signal for continued bullish momentum. The strong free cash flow remains a critical factor supporting the company's dividends and future growth initiatives.