UBS Lifts Broadcom (AVGO) Price Target to $345 Ahead of Earnings

Broadcom Inc. (NASDAQ:AVGO) is one of the AI Stocks Analysts Say You Shouldn’t Ignore. On August 25, UBS analyst Timothy Arcuri raised the price target on the stock to $345.00 (from $290.00) while maintaining a Buy rating. The rating affirmation reflects the firm’s optimism regarding Broadcom’s artificial intelligence momentum as it heads into fiscal third-quarter earnings.

Set to report on September 4^th, Wall Street analysts anticipate the semiconductor and software giant to report earnings of $1.66 in Q3, compared to $1.24 in the same quarter last year. Its revenue for Q3 is also expected to rise 21% year-over-year to $15.82 billion.

Arcuri has particularly noted in-line results for AVGO but expects the company to raise guidance for the fiscal fourth quarter. Google’s newest AI chip, the TPUv6p, which rely on Broadcom’s custom silicon, are ramping up and notably the cause for the expected raised guidance.

It is also anticipated that TPUv6p will witness a sharp acceleration in the second half of 2025, extending into 2026. Wafer requirements for these chips are also likely to increase by 51% year-over-year, with overall momentum translating to a 60% year-over-year increase in the company’s AI revenue for 2025.

Meanwhile, AI-related networking will potentially ramp-up in fiscal 2026 as Ethernet architecture deployment increases. Arcuri also believes that Broadcom will reaffirm a $60 to $90 billion serviceable addressable market for custom chips.

Broadcom is a technology company uniquely positioned in the AI revolution owing to its custom chip offerings and networking assets.

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