Jefferies maintained its ‘buy’ rating Broadcom (Nasdaq: Afgo) and reiterated his 12-month stock price target of $550, implying an upside of ~47.7% from Stocks Closing price $372.45.
This update comes after the recent decline in Broadcom shares, which the company considers an attractive buying opportunity.
The target also remains above Wall Street’s average 12-month price forecast of $516.91, according to data from 27 analysts covering the semiconductor company.
Among the analysts you follow TipRanks24 Broadcom ratings are Buy and three recommend Hold, with no Sell ratings. The consensus AVGO stock price target is $516.91, while the high forecast is $630 and the low is $390.
Jefferies analyst Blayne Curtis maintained an upbeat outlook for Broadcom, citing improved visibility on the company’s fiscal 2028 earnings potential, continued progress on its tension processing unit (TPU) roadmap, and an expanding customer base for custom AI chips.
The analyst noted that investor concerns about Broadcom’s exposure to MediaTek appear overblown, while the company’s broader AI strategy continues to gain momentum.
One of the key factors supporting the positive outlook is Broadcom’s growing presence in the AI infrastructure market. The company has expanded its application-specific integrated circuit (ASIC) customer base and recently secured a new multi-generational partnership with OpenAI for AI accelerators.
Jefferies also highlighted Broadcom’s long-term agreement with Alphabet’s Google for TPUs, which runs through 2031 and provides greater visibility into future revenues.
The company pointed out that Broadcom recently unveiled Jalapeno, an artificial intelligence processor developed in cooperation with… OpenAIAs another catalyst for long-term growth.
According to Jefferies, early tests suggest the chip can deliver meaningful performance gains while reducing power consumption compared to competing solutions. The processor was developed in less than a year with support from OpenAI’s large language models.
The analyst believes that demand for overseas-sourced TPUs could become an important driver of Broadcom’s growth in the coming years as major technology companies continue to increase AI-related capital expenditures.
Jefferies’ price target of $550 is based on expectations that Broadcom can deliver fiscal 2028 earnings per share in the range of $30 to $40.
The valuation implies a 28 times earnings multiple, reflecting confidence in the company’s AI-driven growth opportunities.
