Key Facts
Broadcom (NASDAQ: AVGO) reported a 24% revenue growth in 2025, reaching a record $64 billion, with AI revenue surging 65% to $20 billion. The company is a leader in custom Application-Specific Integrated Circuits (ASICs), which are becoming increasingly popular for AI processing due to their significant energy savings.
Looking ahead, Broadcom anticipates a 28% revenue increase in the first quarter of 2026, fueled by AI semiconductor revenue expected to double. CEO Hock Tan noted that the company sees substantial momentum from its customers in the AI sector, with a backlog of $73 billion and estimates that its AI opportunity could be between $60 billion and $90 billion by 2027.
Analysts predict a 52% revenue growth in 2026 and an additional 37% in 2027, with a current average price target of $457 for Broadcom’s stock, indicating a potential 33% upside from recent closing prices.
