Citigroup raises Broadcom's target price to $480, driven by AI performance exceeding expectations

AASTOCKS
2025.12.15 03:45

Citigroup's research report indicates that Broadcom (AVGO.US) performed better than expected in both results and guidance, primarily due to the continued strong demand for AI, with related business accounting for 32% of fiscal year 2025 sales. The company announced that Anthropic has become its fourth AI customer, and the firm expects the company to add more AI customers in the future, bringing further upside opportunities. The decline in stock price was mainly affected by the downward revision of gross margin guidance, but it is expected that actual performance will exceed guidance, leading to a recovery in stock price.

The firm raised its revenue and earnings per share forecasts for Broadcom for fiscal year 2026 to $96.1 billion and $10.48, respectively, and for fiscal year 2027 to $148 billion and $16.09; the target price was raised from $415 to $480, reiterating a "Buy" rating

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