Broadcom is gaining momentum heading into its next earnings release, and Goldman Sachs thinks the stock could rise. Analyst James Schneider, who rates the chipmaker a “buy,” raised his price target to $435 from $380, implying a potential 13% upside from Tuesday’s closing price. Broadcom is scheduled to report earnings on Dec. 11. “Given strong spending by key customers, our first-quarter guidance exceeds actual results, and we expect AI strength to continue in the fourth quarter. And we expect our updated FY26 AI revenue guidance to be over 100% year-over-year,” he wrote. AVGO YTD Mountain AVGO YTD Chart Analysts expect AI revenue to be $45.4 billion in fiscal year 2026, an increase of approximately 128% year over year. This could reach $77.3 billion in 2027, an increase of 70% from the previous year. Schneider’s target and estimate changes come during a strong week for Broadcom. The stock has climbed 13% since the beginning of the week, trailing tech giant Alphabet. Broadcom is helping its parent company, Google, design specialized AI chips in-house. The analyst said investors will continue to pay attention to contributions from Google and OpenAI next year, as well as how Broadcom’s profit margins will develop in 2026. “We believe expectations are elevated heading into the quarter, and we believe investors are in a positive position given the strong performance and positive data points associated with key XPU customers, particularly Google following the launch of its latest Gemini 3,” he said. “Given the gross margin dilution from the custom XPU business, we expect the focus to be on improving Broadcom’s margins in fiscal 2026 as XPU revenue increases (+160% year-over-year, according to our estimates).” Broadcom stock has risen 66% this year. Most analysts are bullish on Broadcom. According to LSEG, of the 49 companies covering the stock, 47 have rated it a “buy” or “strong buy.”
