Wall Street sets Broadcom (AVGO)  stock price for next 12 months

Broadcom (AVGO) reported robust Q2 2025 results, with revenue up 20% year-over-year to a record $15 billion, primarily driven by strong demand for AI chips and solid performance from VMware. The company projects continued momentum, forecasting Q3 revenue at $15.8 billion and AI chip sales reaching $5.1 billion, extending a 10-quarter growth streak. Wall Street analysts maintain a 'Strong Buy' consensus, with an average 12-month price target of $299.23, citing Broadcom's leadership in custom silicon for hyperscalers, strategic M&A in infrastructure software, and expanding earnings potential, positioning AI to account for over 40% of its business by 2026.

Analysis

Broadcom's recent performance demonstrates strong execution on its dual growth strategy, centered on artificial intelligence and infrastructure software. The company reported a record $15 billion in Q2 2025 revenue, a 20% year-over-year increase, driven by surging demand for its AI chips and a solid contribution from the recently integrated VMware. This performance has extended its growth streak to ten consecutive quarters. The forward-looking guidance is equally robust, with a Q3 revenue projection of $15.8 billion and anticipated AI chip sales of $5.1 billion, reinforcing the AI growth narrative. This operational success is mirrored by an overwhelmingly bullish sentiment from Wall Street, where 28 out of 30 analysts rate the stock a 'Buy'. Analysts from Oppenheimer, Goldman Sachs, and Mizuho have all recently reiterated positive ratings and raised price targets, citing a defensible technology portfolio, leadership in custom silicon for U.S. hyperscalers, and the successful M&A strategy that built its software segment. Goldman Sachs projects that AI-related business could constitute over 40% of revenue by 2026, highlighting a significant and durable tailwind.

Key Decisions for Investors

• Given the record quarterly results, strong forward guidance, and near-unanimous 'Strong Buy' consensus from analysts, investors should view the current stock momentum as fundamentally justified by the company's AI and software growth engines.
• While the average analyst price target of $299.23 implies a modest 6.44% upside, higher targets of $315 from Goldman Sachs and Mizuho suggest that some analysts see greater potential, making any price weakness a potential buying opportunity for those aligned with the bullish thesis.
• Key metrics to monitor are the realization of Q3 revenue guidance and AI chip sales, as continued execution against these targets is critical to sustaining the premium valuation and validating the long-term growth story.
• Investors should note the strategic importance of the VMware integration and the M&A-driven software strategy, as its continued success is a core pillar of the bull case presented by analysts alongside the prominent AI narrative.