Evercore Maintains Bullish Stance on Broadcom, Raises Price Target to $490 Post-Earnings

Evercore has maintained its bullish rating on Broadcom (AVGO) after the company's recent quarterly earnings release, signaling sustained confidence in its financial performance and long-term growth strategy. The firm recently elevated its price target to $490, reflecting a significant upward revision from prior estimates. This adjustment comes amid strong results across Broadcom’s enterprise and communications infrastructure segments, which contributed to a 12% year-over-year increase in revenue during the reporting quarter. The firm highlighted Broadcom’s expanding role in data center infrastructure, especially in high-bandwidth networking and AI-driven chip demand, as key drivers behind the upgraded outlook. Broadcom reported non-GAAP earnings per share of $10.15, surpassing analyst expectations by $0.37, while its operating margin remained robust at 64.8%, demonstrating effective cost management and pricing power. Market reaction has been positive, with AVGO shares rising 3.2% in after-hours trading following the announcement. The elevated price target suggests Evercore sees upside potential of approximately 18% from current levels, placing AVGO among the most highly rated names in the semiconductor sector. Investors are also noting Broadcom’s disciplined capital allocation, including a $10 billion share buyback program and continued strategic acquisitions. The update is particularly relevant for technology and semiconductor investors tracking AI infrastructure demand, cloud expansion, and supply chain resilience. Evercore’s reassessment adds weight to broader market sentiment favoring established players with diversified revenue streams and strong balance sheets.