The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Verdict |
|---|---|---|---|---|---|
Valuation | 20 | 90.9x | 20.1x | Below average | |
Growth | 67 | 25.2% | 5.6% | Above average | |
Quality | 70 | 28.8% | 7.6% | Above average | |
Safety | 63 | 1.3x | 0.4x | Near average | |
Capital Return | 21 | 0.50% | 2.19% | Below average | |
Momentum | 82 | — | — | Above average | |
Sentiment | 52 | — | — | Near average |
This section combines price targets, revision history, analyst coverage changes, and an AI summary of what changed on the Street.
Broadcom stock has seen a positive trend in analyst estimates over the past 30 days, with the average target price rising by 4.44% to reach $463.44. This momentum reflects gradual optimism, especially with the number of analysts remaining steady (10 analysts) and major institutions such as Susquehanna and UBS confirming positive ratings (Buy/Positive), indicating a firm conviction in the company's business model despite the target price remaining stable in the last 24 hours.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Broadcom Inc. (AVGO) is a global leader in designing, developing, and supplying a broad range of semiconductor and infrastructure software solutions. The company generates its revenue from two primary segments: Semiconductor Solutions, which focuses on networking, connectivity chips, and custom artificial intelligence accelerators (XPUs), and the Infrastructure Software segment, which relies heavily on virtualization cloud solutions following the acquisition of VMware.
In the first quarter of fiscal year 2026, the company achieved record financial results; total revenue reached $19.3 billion, representing a 29% year-over-year growth, exceeding expectations due to strong demand for AI chips. GAAP net income for the first quarter was $7.3 billion, with earnings per share of $1.5, while Adjusted EBITDA recorded a record level of $13.1 billion, representing 68% of revenue. The semiconductor segment achieved record sales of $12.5 billion (65% of revenue), while the software segment recorded $6.8 billion (35% of revenue) with a software gross margin of 93%.
Automated analysis for informational purposes only — not investment advice.
Broadcom stock is currently trading at a price of $481.57, which places it above the average price target by analysts of $463.44, but it remains below the upper limit of expectations of $582. The current analyst consensus represents a "Buy" recommendation, reflecting great confidence in the company's ability to lead the AI infrastructure boom despite the current price exceeding the average of the targets.
Broadcom expects to achieve consolidated revenue of approximately $22 billion in the second quarter of fiscal 2026, representing strong year-over-year growth of 47%. Management expects the semiconductor segment to contribute $14.8 billion of this total, driven by a jump in AI chip revenue to reach $10.7 billion. Infrastructure software is also expected to record revenue of approximately $7.2 billion, a growth of 9% compared to the same period of the previous year.
CEO Hock Tan confirmed that Meta's custom accelerator (MTIA) roadmap is progressing excellently and the company is currently shipping, with plans to expand to multiple gigawatts in 2027 and beyond. As for OpenAI, it has officially joined as Broadcom's sixth customer, with plans to begin deploying its first generation of custom XPUs in commercial volumes in 2027 with a computing capacity exceeding 1 GW. These partnerships come within a strategic multi-year framework to provide integrated solutions including design, advanced packaging, and networking.
Management, represented by CFO Kirsten Spears and CEO Hock Tan, clarified that concerns about declining margins due to rack shipments are unjustified. The company confirmed that the profit margins of AI products are fully in line with the rest of the semiconductor business thanks to productivity improvements and cost controls. The consolidated gross margin stabilized at 77% in the first quarter, and the company expects to maintain the same percentage sequentially in the second quarter of fiscal 2026.
Broadcom announced that its Board of Directors approved an additional authorization of $10 billion for its share repurchase program, which is effective until the end of calendar year 2026. During the first quarter of fiscal 2026 alone, the company had already returned $10.9 billion to shareholders, which included $3.1 billion in cash dividends distributed at $0.65 per share, and $7.8 billion directed to repurchase approximately 23 million shares of common stock.