
Broadcom (AVGO) Stock Forecast & Price Target
Broadcom (AVGO) Analyst Ratings
Bulls say
Broadcom's strong performance is reflected in its semiconductor operating margins of 57%, supported by a 3% year-over-year increase in operational expenditure driven by R&D investments. The company's Infrastructure Software revenue of $6.7 billion grew 47% annually and 15% sequentially, highlighting significant demand across its software divisions, particularly VMware. Additionally, Broadcom anticipates AI revenue to expand to $4.4 billion in the second quarter, marking a remarkable 44% increase year-on-year, further reinforcing its position in the rapidly growing AI sector.
Bears say
Broadcom anticipates a 3% sequential revenue decline for its second quarter, projecting $6.5 billion, influenced by seasonal weakness in its Wireless segment, which is expected to remain flat year-over-year despite a typical 15% sequential decline. The company’s non-AI Enterprise Networking revenue is expected to stagnate due to existing inventory issues, further contributing to a cautious outlook for the first half of the year. Additionally, while Broadcom's gross debt has slightly decreased to $68.8 billion, concerns regarding cash flow sustainability and debt repayment capacity may negatively impact investor confidence in the company’s overall financial health.
This aggregate rating is based on analysts' research of Broadcom and is not a guaranteed prediction by Public.com or investment advice.
Broadcom (AVGO) Analyst Forecast & Price Prediction
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