JPMorgan just told its clients to load up on Broadcom. The bank raised its price target on AVGO from $500 to $580, reaffirming an Overweight rating that amounts to a full-throated endorsement of the chipmaker’s AI trajectory.
With Broadcom shares trading between $376 and $396 when the note dropped on June 17, that new target implies upside in the range of 46% to 54%.
The AI engine behind the call
Broadcom’s forecasted revenue for the July quarter sits at $29.4 billion, an 84% year-over-year increase. Broadcom anticipates its AI revenues alone will hit $16 billion, representing growth of over 200% year-over-year. The company has carved out a niche designing custom ASICs, application-specific integrated circuits, for hyperscale cloud providers.
JPMorgan’s thesis boils down to a simple argument: the market is underpricing how much of the AI infrastructure buildout will flow through Broadcom’s order books.
