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Baird raises Broadcom price target citing strong AI revenue outlook
Thursday, March 5, 2026 at 09:49 PM
Baird has increased its price target for Broadcom to $630 while maintaining an Outperform rating, citing an AI revenue outlook that significantly exceeds market consensus.
Context
Baird has raised its price target for Broadcom (AVGO) to $630 while reiterating an Outperform rating, following the company’s strong fiscal first quarter 2026 results. The analyst upgrade is driven by an AI revenue outlook that significantly exceeds market consensus, supported by accelerating demand for custom AI accelerators and Ethernet networking solutions. Broadcom reported record Q1 revenue of $19.31 billion, up 29% year-over-year, with specific AI-related revenue surging 106% to $8.4 billion. This growth is fueled by strategic partnerships with hyperscalers and a massive 10-gigawatt multi-year collaboration with OpenAI. Management now expects AI semiconductor revenue to reach $10.7 billion in the second quarter and provided a long-term ‘line of sight’ to exceeding $100 billion in cumulative AI chip revenue by 2027. To support shareholder value alongside this growth, the board authorized a new $10 billion share repurchase program.
Sources (6)
Broadcom Inc. Announces First Quarter Fiscal Year 2026 Financial Results and Quarterly Dividend | Broadcom Inc.OpenAI and Broadcom announce strategic collaboration to deploy 10 gigawatts of OpenAI-designed AI accelerators | OpenAIBroadcom beats on earnings and guidance as AI revenue doublesBenchmark reiterates Broadcom stock Buy rating on AI revenue ...Broadcom Expands AI Position as Custom Silicon and VMware Boost Growth | Investing.comBaird raises Broadcom stock price target on AI revenue ...
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