Broadcom Stock (AVGO) To Breakout? Price Target Raised Ahead of Earnings

Broadcom Inc. (NASDAQ: AVGO) is experiencing renewed investor confidence, reflected in a series of price target increases from leading analysts ahead of its upcoming Q4 earnings report. The upward revisions highlight the company's strong positioning in the artificial intelligence (AI) sector and promising growth prospects.

Oppenheimer are the latest to raise their price target on Broadcom, pushing their mark on AVGO to $435 from $400, reiterating an “Outperform” rating. This optimistic view is driven by the anticipation of strong Q4 results, particularly from Broadcom's AI compute and networking franchises. Oppenheimer expects the next-generation Tomahawk6 volumes to ramp up in the second half of next year, further boosting growth and gross margins. 

Jefferies has also weighed in with a significant price target increase, moving from $415 to $480 while maintaining a “Buy” rating. Jefferies emphasized the pivotal role of Broadcom's AI Application-Specific Integrated Circuit (ASIC) business as a key growth driver. The firm highlighted the exponential surge in Google's token processing, growing from 480 trillion in April 2025 to 1,300 trillion by October, underscoring the substantial demand that aligns with Broadcom's revenue growth.

Adding to the positive sentiment, Broadcom's strategic partnership with OpenAI is expected to significantly enhance its AI capabilities and market reach. This collaboration involves deploying 10 gigawatts of data center infrastructure from the second half of 2026 through 2029. Mizuho has responded by raising its price target for Broadcom to $430, estimating the potential financial impact of the OpenAI partnership to be between $150 billion and $200 billion over several years.

Analyst Price Targets

The analyst consensus is overwhelmingly bullish, with multiple firms raising their price targets and maintaining positive ratings. Broadcom's strong performance in the AI sector, strategic partnerships, and robust financial results have collectively contributed to this optimistic outlook. The company's year-to-date performance of 64.25% further underscores its market outperformance.

Next week's earnings report is highly anticipated, and will provide further insights into the company's financial health and future prospects. The company's strategic initiatives and technological prowess position it favorably for continued success, and with Wall St on-side, bulls will be looking for a break above the $385 resistance.