Prediction: Can Broadcom Shares Hit $550 in 2027?

Quick Read

• AVGO trades 23% beneath its 52-week precocious contempt AI spot gross jumping 143% to $10.8 cardinal past quarter.

• Hock Tan projects AI spot gross exceeding $100 cardinal by 2027, making the $522 Wall Street statement terms people look conservative.

• Reaching $550 requires a 44% summation but zero aggregate expansion, with each dollar of upside coming from net maturation unsocial astatine 46x guardant P/E.

• Act now: the expert who called NVIDIA successful 2010 conscionable named his apical 10 AI stocks — and Broadcom didn't marque the cut. Grab the names FREE today.

Broadcom (NASDAQ:AVGO) is successful the mediate of the astir assertive AI ramp successful semiconductor history, yet shares commercialized obscurity adjacent their 52-week high.

CEO Hock Tan told investors past 4th that "Broadcom achieved grounds revenue, operating nett and escaped currency travel successful Q2 driven by accelerating maturation successful AI semiconductor gross and beardown operating leverage", with AI spot income jumping 143% year-over-year to $10.8 billion. The banal sits astatine $382.07. Can AVGO deed $550 by 2027?

What's Holding Broadcom Back

Despite the blowout Q2 earnings, AVGO is down 8.33% implicit the past period and disconnected 0.95% connected the week. The banal peaked astatine $495 connected the net merchandise time and has declined since. Two factors thrust the pullback:

First, the barroom got higher. With Q3 guidance calling for $29.4 cardinal successful gross and AI income implicit 200% YoY, immoderate slippage gets punished. Second, sentiment momentum is fading. The composite sentiment people has declined 14.98 points implicit 30 days, sliding from a May highest of 73.43 to 50.57 today. With a beta of 1.43, AVGO trades similar the high-beta AI bellwether it is.

Wall Street Sees 37% Upside. Our Model Says That's Light

Of 48 analysts, 7 complaint it Strong Buy, 37 Buy, and 4 Hold, with zero sells. The statement people sits astatine $522.06. Our exemplary lands astatine a basal lawsuit of $494.32, implying 29.38% upside, with a bull lawsuit of $540.32 and a carnivore lawsuit of $411.57, each astatine 90% confidence.

The statement people assumes lone humble aggregate enlargement disconnected guardant net inactive being revised higher each quarter. Hock Tan has guided to "AI gross from chips, conscionable chips, successful excess of $100 cardinal successful 2027". If that lands, $522 looks conservative.

Act now: the expert who called NVIDIA successful 2010 conscionable named his apical 10 AI stocks — and Broadcom didn't marque the cut. Grab the names FREE today.

The Path to $550 Per Share

Reaching $550 from today's terms of $382.07 requires a summation of 44%. With guardant EPS of $12, a terms of $550 implies a guardant P/E of 46x. Our basal lawsuit of $494.32 already implies 47x, meaning the bold people requires zero further aggregate expansion. The full summation comes from net maturation alone.