Broadcom Inc. (AVGO) has received a fresh vote of confidence from Wall Street analysts, who have raised price targets following the company’s third-quarter (Q3) earnings and strong guidance, mainly driven by booming demand for artificial intelligence infrastructure.
JPMorgan, Morgan Stanley, and Truist all lauded Broadcom's performance and strategy around AI, especially highlighting a new $10 billion customer engagement, which is believed to be with OpenAI.
The chipmaker’s revenue of $16 billion and adjusted earnings per share (EPS) of $1.69 both exceeded the analysts’ consensus estimate of $15.82 billion and $1.66, according to Fiscal AI data. On the earnings call, the company said it had secured over $10 billion in orders for AI racks.
Broadcom stock traded over 13% higher in Friday’s premarket. On Stocktwits, retail sentiment toward the stock remained in ‘extremely bullish’ territory while message volume improved to ‘extremely high’ from ‘high’ levels in 24 hours.
The stock experienced a 1,007% surge in user message count over a 24-hour period. A bullish Stocktwits user referred to the stock as ‘supersonic’.
Another user sounded excited for Broadcom’s rumoured chip deal with OpenAI.
JPMorgan analyst Harlan Sur raised Broadcom’s price target to $400 from $325, citing strong AI-driven momentum, steady demand in non-AI semiconductors, and ongoing strength from the recently acquired VMware business. Sur emphasized the significance of one major client officially becoming a qualified customer, securing $10 billion in orders. Truist also boosted its price target to $365 from $295, maintaining a ‘Buy’ rating.
The firm noted Broadcom’s ‘low-drama’ Q3 results and revised guidance were given a ‘dramatic’ shade after management’s optimistic tone about AI growth.
Morgan Stanley raised its target to $382 from $357, calling the July-quarter performance solid and largely aligned with expectations. The firm emphasized the forward-looking guidance, particularly the surprise forecast of a $10 billion potential revenue from the AI infrastructure customer.
Broadcom stock has gained 32% in 2025 and over 100% in the last 12 months.
For updates and corrections, email newsroom[at]stocktwits[dot]com.