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

Broadcom Inc. (NASDAQ:AVGO) is included among the 14 Stocks on the Verge of Becoming Dividend Aristocrats.

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

On March 5, RBC Capital Markets raised its price recommendation on Broadcom Inc. (NASDAQ:AVGO) to $360 from $340. The firm reiterated a Sector Perform rating on the shares. The analyst said the company’s Q2 outlook looked solid. The commentary around FY27 was even more bullish, according to the research note. RBC also pointed to Broadcom’s history of consistent execution. Based on that track record, the firm said it sees little reason to question management’s visibility.

During the company’s Q4 2025 earnings call, CEO Hock Tan said total revenue for Q1 2026 reached a record $19.3 billion. That marked a 29% increase from a year earlier. Tan said the stronger-than-expected results were driven largely by higher growth in AI semiconductors. He also reported that consolidated adjusted EBITDA reached a record $13.1 billion for the quarter, equal to 68% of total revenue.

Looking ahead, Tan said the company expects that momentum to continue as its custom AI XPUs move into the next stage of deployment with five customers. He said Broadcom expects consolidated revenue of about $22 billion in Q2 2026. That would represent roughly 47% year-on-year growth. Tan also highlighted the sharp rise in AI semiconductor sales. AI semiconductor revenue increased 106% from the prior year to $8.4 billion, well above the company’s outlook.

He said the trend could strengthen further in Q2. Semiconductor revenue is projected to reach $14.8 billion, which would mark a 76% increase from a year earlier. Much of that growth is expected to come from AI-related products. The company expects AI revenue to rise about 140% year-on-year to $10.7 billion.

Broadcom Inc. (NASDAQ:AVGO) designs and supplies semiconductors, enterprise software, and security solutions. The company operates through two main segments: semiconductor solutions and infrastructure software.

While we acknowledge the potential of AVGO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AVGO and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 40 Most Popular Stocks Among Hedge Funds Heading into 2026 and 13 Best REIT Dividend Stocks to Invest in

Disclosure: None.  Follow Insider Monkey on Google News.