Broadcom (AVGO) Eyes Major AI Growth in 2026: Analysts Raise Price Target

Why this matters: Broadcom's growth in AI revenue signifies its increasing importance in the AI landscape. Investors are closely monitoring its partnerships with major players like Google and OpenAI, as well as its ability to maintain strong margins despite the costs associated with its custom XPU business.

Broadcom's focus on custom AI chips and networking solutions has uniquely positioned it to capitalize on the growing demand for AI infrastructure. The anticipated contributions from Google, designing its in-house specialized AI chips with Broadcom's help, and OpenAI are key factors driving revenue expectations.

Analysts expect investor focus to be on FY26 AI revenue guidance, contributions from Google and OpenAI, and gross margins as custom XPU shipments scale.

While expectations are high, positive datapoints from Google's Gemini 3 launch and strong peer results from Nvidia contribute to the positive outlook.

Broadcom's ability to exceed previous forecasts of 100% year-over-year AI revenue growth hinges on continued robust spending from key customers and sustained AI strength.

Analysts estimate a 128% year-over-year increase, potentially reaching $45.4 billion.

Contributions from Google and OpenAI, along with Broadcom's custom chip offerings, are the primary drivers.

Goldman Sachs raised the price target to $435 per share.

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