Broadcom (AVGO) stocks have long been considered a high potential purchase on Wall Street. However, that perception has hit the uncertainty facing global markets. Chipmaker’s stock has grown by 1% so far after a slow start to 2025. Luckily, Avgo finally showed momentum, increasing 26% over the last 30 days alone. Analysts also have confidence to rebound into inventory, suggesting that they could soon hit a new $250 ATH.
According to Merius analyst Ben Leitz, there should be room for Avgo to climb. Experts raised the price target for Broadcom Avgo stock from $198 to $283, maintaining the purchase rating in their latest research notes. The significant increase reflects the allocated price-to-revenue multiple of Broadcom’s forecast revenues 30 times for fiscal year 2027, up from the previous 22 times. Broadcom remains second in the AI chip sector, but analysts say it remains a solid investment and a must-have stock. “The dual sources in the enterprise can gain the flexibility of a variety of workloads from both NVIDIA and Broadcom, but everything continues to commit to both,” writes Reitzes.
Broadcom Stock has produced significant long-term growth of over 300% since early 2023. The company has a stable balance sheet, an impressive client base and unique products. Chipmaker contributes to the growing market for AI and CHIP technologies. The chip is used in a wide range of applications, and the chip maker’s numbers speak for itself. The growing demand for Broadcom chips and the rapid expansion of the AI industry continue to drive business growth, making it a promising investment option.
“With seven XPU customers currently being identified, the serviceable addressable market could increase to the $140-210 billion range in 10 years. Broadcom captured more than $70 billion in AI revenues after 10 years, taking into account the market share of these seven customers,” Reitzes wrote in the analysis. “The AI networking portion of Broadcom’s revenues will reach around $6 billion in 2025, with ~50% Y/Y (year-on-year) increase, allowing us to exceed 20% in the long run.”
Broadcom (AVGO) stocks are above the simple 200-day moving average near the top of the 52-week range. So there might be a little more room for growth and perhaps enough room to hit a new ATH in 2025. CNN analysts suggest that the stock is a 9/10 purchase and will project $300 over the next 12 months. As for 2025, there is a very high chance that AVGO will end annual trading above $250, perhaps $260. Of the 43 analysts surveyed by CNN, 88% suggested buying AVGO, while the remaining 12% suggested holding.
