Broadcom (AVGO) just gave Wall Street numbers big enough to make one analyst rethink the entire investment case.
The chipmaker reported earnings on September 2, 2026, and the results came in strong.
Days later, one of the most closely watched semiconductor analysts responded with a price target that turned heads across the market.
That target sits roughly 68% above where the stock traded, which is a wide margin for a company already worth about $1.75 trillion.
Here is what the analyst said, and what still has to go right for the stock.
Why Cantor Fitzgerald raised its Broadcom price target to $600
Cantor Fitzgerald analyst C.J. Muse lifted his price target on Broadcom to $600 from $525 and kept an Overweight rating, Investing.com reported.
The move came on September 3, 2026, one day after earnings.
Muse is worth listening to here. He covers the technology sector and has logged 321 ratings with about a 71% success rate. He previously covered chips at Evercore before joining Cantor.
The new target points to about 68% upside from Broadcom’s recent price of $357.90.
The AI revenue guidance that changed the math
The upgrade comes down to how much money Broadcom now expects to make from AI.
On the earnings call, the company raised its fiscal year 2027 AI revenue target to $115 billion, up from a prior view of more than $100 billion.
It then added a first-ever fiscal 2028 AI revenue guide of $230 billion.
That points to total fiscal 2028 revenue near $285 billion, which runs roughly $50 billion ahead of what Wall Street had penciled in.
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Muse now models 2028 earnings per share of $35, above the $27.39 consensus.
His $600 target reflects about 17 times that estimate, a multiple that looks modest for a company growing this fast.
What Broadcom actually does in the AI economy
Broadcom designs custom AI chips, called ASICs (application-specific integrated circuits).
Instead of buying standard chips from Nvidia, giants like Google, Meta, OpenAI, and Anthropic hire Broadcom to design their own.
That work showed up in the latest quarter.
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AI semiconductor revenue hit $16.7 billion, a 221% jump from a year earlier, Benzinga reported.
Total quarterly revenue came in at $29.59 billion, ahead of the $29.36 billion analysts expected.
Why the stock fell even after a strong quarter
Broadcom beat expectations, yet the stock still dropped. Two things drove that.
First, the fourth-quarter revenue guide of about $34.8 billion came in slightly under the $35.03 billion Wall Street expected.
Second, the broader chip sector had a rough stretch, with traders taking profits after a strong run.
Muse’s view is that the market is treating Broadcom with too much caution given the size and visibility of its order backlog.
The risk that could hold Broadcom back
Cantor pointed out that Broadcom stays heavily constrained on supply through fiscal 2027 across several parts of the chip-making chain.
Those pressure points include:
Where the supply constraint affects
- Advanced wafers and substrates, the base materials for chips
- High-bandwidth memory (HBM), the fast memory AI chips depend on
- Chip-on-Wafer-on-Substrate (CoWoS) packaging, a key assembly step
Broadcom’s real challenge is making enough chips to meet its own targets, not finding buyers.
What investors should weigh before buying in
If you hold Broadcom or are thinking about it, a few points deserve attention.
- The forward valuation is reasonable. Because profits are climbing quickly, the stock trades at a lower multiple on future earnings than its recent price suggests.
- Watch the debt. After buying VMware, Broadcom carries about $65 billion in debt against $20 billion in cash. Its strong cash flow covers this comfortably, but it is worth tracking.
- Avoid over-concentration. Broadcom depends on a small group of large customers. If one or two cut spending, the effect would be sharp, so balance your chip exposure across different types of companies.
The 68% upside Muse sees rests on signed contracts and rising demand.
The same high expectations that create that opportunity also raise the stakes.
Broadcom has to keep delivering, and the next few quarters will show whether it can.
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