Prediction: This Will Be Broadcom's Stock Price by the End of 2027

While Nvidia (NASDAQ: NVDA) has dominated the speech arsenic the apical artificial quality (AI) computing portion supplier for years, Broadcom (NASDAQ: AVGO) is becoming a unit to beryllium reckoned with. Broadcom's attack to AI computing is much specialized than Nvidia's, but with AI workloads starting to go much mature, this specialized attack is gaining momentum.

Although Broadcom has been an fantabulous performer implicit the past fewer years, I deliberation it could present further awesome gains implicit the adjacent two. If you're not a Broadcom shareholder already, it's not excessively precocious to scoop up shares.

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Nvidia makes graphics processing units (GPUs) -- versatile parallel processors that tin grip a wide array of computationally dense workloads. Broadcom makes customized chips called application-specific integrated circuits, which are designed successful collaboration with its information halfway clients to tally conscionable 1 benignant of workload.

What Broadcom's spot customers springiness up successful flexibility, they summation successful show and cost. Its customized AI chips tin outperform Nvidia's GPUs successful immoderate applications.

Google's Tensor Processing Unit (TPU) is an fantabulous illustration of what a decently designed customized AI spot tin do. Broadcom and Alphabet collaborated for implicit a decennary to make it, and erstwhile utilized to grip AI inference tasks, it delivers acold amended outgo show than a GPU.

Several much AI hyperscalers are moving with Broadcom to make their ain ASICs, and its AI spot gross is skyrocketing. In its fiscal 2026 archetypal 4th (which ended Feb. 1), Broadcom's AI semiconductor gross reached $8.4 billion, up 106% twelvemonth implicit year. In the existent quarter, its AI semiconductor gross is expected to emergence 140% twelvemonth implicit twelvemonth to $10.7 billion. This maturation acold outpaces what Nvidia is delivering, but Broadcom won't halt there.

Broadcom projects that its AI spot gross volition scope $100 cardinal annually by the extremity of 2027. That doesn't see its connectivity switches, which are mostly included successful the AI semiconductor gross total. So, there's intelligibly immense maturation up that investors should beryllium excited about.

But what volition Broadcom's banal terms be?

Wall Street's statement projection for Broadcom's gross seems to enactment up with what absorption is saying. The mean expert pursuing the institution expects astir $154 cardinal successful gross for its fiscal 2027. That's based connected a projection of 64% gross maturation during fiscal 2026 and 47% successful fiscal 2027. Over the past 12 months, Broadcom has generated $5.21 successful net per stock (EPS). For its fiscal 2027, EPS is projected to beryllium $17.54.