By Anusuya Lahiri
Publication Date: 2026-05-14 17:03:00
Wells Fargo Raises Broadcom Forecast To $545
Rakers maintained an Overweight rating on Broadcom and raised his price forecast to $545 from $430.
The upgrade followed a new Wells Fargo framework that links AI semiconductor demand directly to physical data center power capacity rather than relying on traditional market-sizing models.
Broadcom shares rose about 5% to $438 after the analyst call.
Rakers Sees AI Demand Running Above Consensus
Rakers said the firm’s new “pluggable gigawatt-driven” model suggests AI semiconductor revenue is tracking 30% to 40% above prior Wall Street expectations.
According to Wells Fargo, the methodology captures rising shipments of custom AI accelerators tied to expanding cloud AI capacity.
Wells Fargo Lifts Long-Term Financial Forecasts
The stronger AI outlook prompted Wells Fargo to raise Broadcom’s fiscal 2027 revenue and earnings-per-share estimates by 22% and 19%, respectively, versus consensus expectations.
The firm also increased its fiscal 2028 revenue…