Broadcom (AVGO) Gets Fresh $382 Target — Can It Keep Pace With Nvidia?

Broadcom Inc. (NASDAQ:AVGO) is one of the AI Stocks to Watch Out For in 2025. On September 2, Morgan Stanley raised the firm’s price target on the stock to $357 from $338 and kept an Overweight rating on the shares.

The firm said that its latest ASIC checks are positive and that it has a bullish ethernet networking outlook. Moreover, it also sees continued strength in hyperscaler capex and inference demand.

The firm raised estimates ahead of earnings due to the “strong prospects” for both ASICs and networking in AI along with a “modest recovery” in Broadcom’s core business.

“Outside of AI, we expect a cyclical recovery in semis and stable software.”

Post earnings, on September 5, Morgan Stanley analyst Joseph Moore raised the price target on the stock again to $382.00 (from $357.00) while maintaining an Overweight rating. Analysts remain bullish on Broadcom, but note how the new long-term forecasts are risky. Customers have multiple supplier options to choose from, and Nvidia is still much bigger than Broadcom.

“This is one of the most credible management teams in our coverage, but it’s worth noting that they have never done this type of 2-3 year forecasting before, that ASIC programs are delayed frequently, that export controls are a major factor where AVGO evades scrutiny that has dominated the dialogue vs. merchant peers. The major ASIC customers are all multisourcing and pushing on multiple vectors at once, and could at some point choose a different lane. We note that NVIDIA forecast $7 bn of sequential growth, more than the entirety of AVGO quarterly AI revenue, with 3-4x the networking revenue, so some of AVGO’s share gain commentary falls flat.”

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

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Disclosure: None.