Broadcom Inc. Surges with 70% Price Target Increase - Is AVGO a Strong Buy in the Market?

Broadcom Inc is thriving in the semiconductor market, with its AI semiconductor revenue skyrocketing 46% to over $4.4 billion in Q2 2025. The company’s stock has surged 79% in three months, prompting HSBC to upgrade it and raise the price target by 70%. Broadcom is a leading force in ASIC technology, focusing on high-performance computing, networking, and storage applications.

The company’s financial results for Q2 2025 exceeded expectations, with record revenue of $15 billion and adjusted earnings per share of $1.58, beating estimates. Broadcom’s AI semiconductor business saw a 46% year-over-year revenue increase, contributing significantly to its total quarterly revenue of $8.4 billion in the semiconductor segment.

Broadcom’s strategic partnerships with major tech companies like Meta, Apple, and OpenAI position it as a key player in the industry. Analysts project substantial growth in ASIC revenue for the company, with estimates reaching $42.8 billion in fiscal 2027. Broadcom anticipates Q3 2025 revenues of approximately $15.8 billion, driven by sustained demand in both semiconductor and software segments.

With a consensus “Strong Buy” rating from analysts and an average price target of $293.83, Broadcom’s future looks promising. The company’s strategic positioning in the AI infrastructure market, coupled with strong financials and analyst confidence, make it a compelling investment. Despite a rich valuation, Broadcom’s growth trajectory and market potential suggest attractive upside for investors, especially with accelerated AI adoption.

Read more at Yahoo Finance: This Analyst Just Raised His Broadcom Stock Price Target by 70%. Should You Buy AVGO Now?