Analysts raise Broadcom stock price target

Broadcom (AVGO) stock closed the May 19 trading session at $411.07, or 6.5% lower compared to its highest-ever closing price of $439.79 on May 14, according to Yahoo Finance.

The drop happened despite several analyst upgrades.

Wells Fargo and TD Cowen both raised their price targets.

Wells Fargo reiterated an overweight (buy) rating and raised its price target for Broadcom to $545 from $430.

TD Cowen reiterated a buy rating for Broadcom stock and raised the price target to $500 from $405.

UBS reiterated a buy rating and raised its price target to $490 from $475, according to Yahoo Finance.

Despite this price hike, UBS analysts also issued a strong warning about semiconductor stocks, including Broadcom, Proactive reported.

In addition to this warning about semiconductor stocks being a crowded long, most semiconductor stocks dipped on May 15.

A possible cause of this sell-off was President Donald Trump's meeting with Chinese leader Xi Jinping, which ended without major chip deals, as reported by the Wall Street Journal.

In addition to these factors, Nvidia's (NVDA) Q1 fiscal year 2027 earnings are scheduled for release on May 20. It has become a common pattern for Nvidia's stock to experience volatility near earnings, and a hit to Nvidia can spill over to other semiconductor stocks dependent on the AI boom.

Evercore ISI raises Broadcom stock price target

Evercore ISI analyst Mark Lipacis updated his opinion on Broadcom stock, according to TipRanks.

Lipacis is one of the analysts with the best track records out there. His TipRanks profile shows that he ranks 19 out of 12,237 Wall Street analysts, with a success rate of 73% and an average return of 41%.

He believes that after doing AI channel checks, the workloads will shift from a training-led phase to an inference-led phase by the end of 2026.

This theme is pushing hyperscalers to focus on cost-per-token, return on investment, and total cost of ownership. In turn, hyperscaler interest in custom-built AI accelerators or application-specific integrated circuits (ASICs) is growing, which benefits Broadcom.

Broadcom is known for its ASIC chips and is Google's partner in designing its TPUs. The recent expansion of the partnership also included Broadcom supplying Google with networking equipment. In addition, Broadcom is Meta's partner for the design of its MTAI chips.

Mark Lipacis reiterated an outperform rating for Broadcom stock and raised the price target to $582 from $490.

Downside risks for investing in Broadcom include:

• Slowdown in AI infrastructure spending
• Share loss in the custom compute
• VMware competition

And while analysts are mostly focused on Broadcom's semiconductor business, the company has positioned itself as a major player in enterprise infrastructure software following its 2023 acquisition of VMware. The AI boom has proven a boost for this side of the business, too.

Broadcom renews partnership with London Stock Exchange Group

Broadcom recently unveiled VMware Cloud Foundation (VCF) 9.1, an infrastructure platform for production AI workloads.

The new version enables enterprises to deploy inference and agentic AI applications at a significantly lower cost, with enhanced security and the freedom to choose GPU and CPU hardware.

Broadcom and London Stock Exchange Group (LSEG) have announced a renewal of their technology partnership, with a new five-year agreement centered on VMware Cloud Foundation.

LSEG has been using VMware software across parts of its technology stack for more than a decade.

"Extending our use of VMware Cloud Foundation supports an engineered private cloud for our operations, while giving us the flexibility to support new services and workloads as our technology needs evolve," stated Andrew Knight, LSEG's CIO for Infrastructure and Cloud, in the press release.

To understand why improving VMware and extending deals like this one with LSEG is very important, we can look at Broadcom's Form 10-Q. It shows that revenue can be divided into two segments: semiconductor solutions and infrastructure software.

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Of the total revenue of $19.3 billion, $12.5 billion came from semiconductor solutions and $6.8 billion came from infrastructure software. However, if we take a closer look, we'll see that the cost of revenue, research and development, and other expenses are much higher for the semiconductor segment.

This is why we should look at operating income. It was $5.3 billion for infrastructure software and $7.5 billion for semiconductor solutions. Or, to put it plainly, Broadcom ensured its most profitable revenue segment stays strong with this deal.

Investors interested in Broadcom should also pay close attention to its main competitor in the semiconductor arena, Marvell (MRVL), especially now that the company has gained the support of both Advanced Micro Devices (AMD) and Nvidia.

Disclosure: The author holds no position in any of the stocks mentioned at the time of writing.

Related: 5-star analyst resets Intel stock price target

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This story was originally published May 20, 2026 at 7:47 PM.