By Mkeshav
Publication Date: 2025-12-01 15:28:00
BofA Securities has raised its price target for Broadcom Inc (AVGO) to $460 from $400, while maintaining a Buy rating for the stock.
The adjustment, announced on December 1, 2025, reflects heightened optimism about Broadcom’s role in Google’s Tensor Processing Unit (TPU) ecosystem and its broader AI semiconductor business.
Broadcom’s stock currently trades near $403, close to its 52-week high, after delivering a 151% return over the past year. BofA analysts project a significant increase in TPU average selling prices, forecasting them to rise from $5,000-$6,000 to $12,000-$15,000 by 2026. They also expect potential upside from both Google and external customers, such as Anthropic and Meta.
While BofA has slightly lowered its gross margin expectations due to Broadcom’s higher compute/ASIC product mix, the firm highlights the company’s impressive financial health. Broadcom posted a robust 28% year-on-year revenue growth and maintained gross profit margins above…
