Broadcom Inc. (NASDAQ: AVGO) has seen its shares rebound to nearly $400, marking a more than 30% increase since its lows earlier in 2026, after experiencing a 25% drop below $300. The semiconductor company, which is up over 10% this year, is poised to benefit from expanded partnerships in artificial intelligence (AI) with Meta Platforms (NASDAQ: META) and Google’s parent company Alphabet (NASDAQ: GOOGL).
Recently, Broadcom and Meta confirmed their collaboration on custom AI chips, including the development of the world’s first 2nm AI accelerator, extending their partnership through 2029. This expansion is part of a multi-gigawatt (GW) rollout, with estimates suggesting that Broadcom could generate around $20 billion in revenue for each GW. The company anticipates a 76% year-over-year increase in AI revenue to $14.8 billion, with 40% expected to stem from networking components.
As Broadcom’s shares approach their previous high of $411, the current forward price-to-earnings (P/E) ratio stands at about 30x, a significant decrease from the 47x-49x range seen in late 2025. Analysts maintain a bullish outlook, with a consensus price target near $435, suggesting up to a 10% upside, and some more optimistic targets reaching as high as $545.
