Broadcom Inc. (AVGO) is positioned for sustained growth in the next 12 months, with analysts projecting a potential stock price near $1,000 as demand for its semiconductor and infrastructure solutions accelerates. The company’s strategic acquisitions and strong AI-related revenue streams are key drivers.
- AVGO reported non-GAAP EPS of $9.78 in FY2025, up 13% YoY.
- AI-related products accounted for 42% of Q4 2025 revenue.
- VMware acquisition closed in late 2024; software revenue up 28% post-integration.
- Average 12-month price target: $985, based on 16% projected fiscal 2026 revenue growth.
- Buyback program of $15 billion expected over the next year.
- Forward P/E stands at 28.3x, reflecting growth premium despite elevated valuation.
Broadcom Inc. (AVGO) has emerged as a central player in the global semiconductor ecosystem, with its stock showing resilient performance amid macroeconomic uncertainty. Over the past fiscal year, Broadcom reported non-GAAP earnings per share of $9.78, up 13% year-over-year, driven by robust demand for data center chips and networking hardware. Its AI-focused product lines, including custom silicon for cloud providers and enterprise AI workloads, contributed approximately 42% of total revenue in Q4 2025. The company’s acquisition strategy has been pivotal in expanding its market reach. Following the completed $61 billion purchase of VMware in late 2024, Broadcom integrated cloud infrastructure capabilities into its portfolio, enabling cross-selling opportunities across its existing customer base of over 700 enterprise clients. This integration has already resulted in a 28% increase in software licensing revenue during the first full quarter post-acquisition. Analysts tracking AVGO have revised their 12-month price targets upward, with an average consensus estimate of $985, based on projected revenue growth of 16% for fiscal 2026. Key assumptions include continued expansion in artificial intelligence infrastructure spending, solid gross margins above 68%, and disciplined capital allocation through buybacks totaling $15 billion over the next 12 months. Market participants, including institutional investors and hedge funds, are increasingly favoring Broadcom due to its predictable cash flow generation and diversified exposure across telecommunications, automotive, and data center sectors. The stock currently trades at a forward P/E ratio of 28.3x, slightly above the S&P 500 average but justified by high growth expectations and strong balance sheet liquidity.