Broadcom (AVGO) recently received a vote of confidence from Redburn Atlantic, which initiated coverage of the stock with a “Buy” rating. The firm pointed to the company’s strong position in application-specific integrated circuits (ASICs) as a key driver of long-term growth. Analyst Mike Harrison set a price target of $301, a new Street high. 

The bullish call adds to recent optimism around Broadcom, with recent price target hikes from Melius Research and Mizuho. Broadcom’s fiscal first-quarter earnings showed a 25% jump in revenue year over year, with AI-related sales playing a growing role.

As investor interest in AI and cloud infrastructure grows, analysts appear increasingly confident in Broadcom’s ability to deliver sustained performance.

About Broadcom Stock

Broadcom (AVGO), headquartered in Palo Alto, California, is renowned for its diverse portfolio of semiconductor products, coupled with its infrastructure software solutions. Valued at $1,1 trillion, the company’s shares have soared by 71% over the past 52 weeks, showcasing its resilience. 

Broadcom Surpasses on Fiscal Q1 Earnings

On March 6, Broadcom released its fiscal Q1 2025 earnings, surpassing Wall Street’s expectations. The company reported revenue of $14.9 billion, comfortably ahead of the $14.6 billion forecast and marking a 25% year-over-year jump.

The sharp uptick was powered by artificial intelligence and infrastructure software, each clocking in growth well above 40%. AI revenue soared by 77%, reaching $4.1 billion. The infrastructure segment saw a 47% rise in revenue, reaching $6.7 billion during the quarter.

The company’s adjusted EBITDA climbed 40.9%, totaling $10.1 billion. Non-GAAP EPS surged by 45.5%, hitting $1.60, easily surpassing the forecast $1.51. Adding to the positive momentum, Broadcom’s free cash flow increased by 28.1% to $6 billion.

As a testament to their confidence in future growth, management also announced a $10 billion stock buyback program in early April, set to run through the end of the year. CEO Hock Tan has emphasized that this move underscores the board’s trust in Broadcom’s diversified product lineup.

Looking ahead, management has projected fiscal Q2 2025 revenue to reach $14.9 billion, reflecting a 19% increase from the previous year.

Meanwhile, analysts tracking Broadcom forecast Q2 EPS to grow 54% year-over-year to $1.34, and fiscal 2025 EPS to rise 53.9% from the prior to $5.71. 

What Do Analysts Expect for Broadcom Stock?

Wall Street's sentiment toward AVGO is nothing short of bullish. Analysts are clearly betting on the company’s momentum to continue, especially with tailwinds like AI and infrastructure software business growth adding fuel to the fire. The company will release its fiscal Q2 earings on June 5, which should also grab investor attention. 

The stock currently enjoys a “Strong Buy” consensus, a reflection of widespread confidence in its performance trajectory. Among 33 analysts, 29 advocate a “Strong Buy,” one has a “Moderate Buy,” and three sit on the fence with a “Hold.”

The average price target of $243.86 represents minimal upside from current prices, while the Street-high price target of $301 suggests shares could gain 24% from here.