RBC Capital Markets Lifts Broadcom (AVGO) Price Target, Points to Bullish FY27 Commentary

On March 5, RBC Capital Markets raised its terms proposal connected Broadcom Inc. (NASDAQ:AVGO) to $360 from $340. The steadfast reiterated a Sector Perform standing connected the shares. The expert said the company’s Q2 outlook looked solid. The commentary astir FY27 was adjacent much bullish, according to the probe note. RBC besides pointed to Broadcom’s past of accordant execution. Based connected that way record, the steadfast said it sees small crushed to question management’s visibility.

During the company’s Q4 2025 net call, CEO Hock Tan said full gross for Q1 2026 reached a grounds $19.3 billion. That marked a 29% summation from a twelvemonth earlier. Tan said the stronger-than-expected results were driven mostly by higher maturation successful AI semiconductors. He besides reported that consolidated adjusted EBITDA reached a grounds $13.1 cardinal for the quarter, adjacent to 68% of full revenue.

Looking ahead, Tan said the institution expects that momentum to proceed arsenic its customized AI XPUs determination into the adjacent signifier of deployment with 5 customers. He said Broadcom expects consolidated gross of astir $22 cardinal successful Q2 2026. That would correspond astir 47% year-on-year growth. Tan besides highlighted the crisp emergence successful AI semiconductor sales. AI semiconductor gross accrued 106% from the anterior twelvemonth to $8.4 billion, good supra the company’s outlook.

He said the inclination could fortify further successful Q2. Semiconductor gross is projected to scope $14.8 billion, which would people a 76% summation from a twelvemonth earlier. Much of that maturation is expected to travel from AI-related products. The institution expects AI gross to emergence astir 140% year-on-year to $10.7 billion.

Broadcom Inc. (NASDAQ:AVGO) designs and supplies semiconductors, endeavor software, and information solutions. The institution operates done 2 main segments: semiconductor solutions and infrastructure software.

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