BofA cut Broadcom's price target to $450 from $500 while maintaining a Buy rating
Earnings estimates for 2026-2028 were raised by 2%, 16%, and 37% respectively
Broadcom's AI sales guidance exceeds $100 billion for fiscal 2027, 20% above consensus
The company reported Q1 2026 earnings that surpassed market expectations
📖 Full Retelling
BofA Securities lowered its price target on Broadcom (NASDAQ:AVGO) to $450 from $500 on May 3, 2026, while maintaining a Buy rating on the semiconductor giant, citing lower sector multiples as the reason for the adjustment. Despite the price cut, the firm raised its fiscal 2026, 2027, and 2028 pro forma earnings per share estimates by 2%, 16%, and 37% respectively to $10.94, $17.05, and $23.21, now applying a 26x multiple versus 33x previously to calendar year 2027 estimated earnings. The investment bank highlighted several positive factors from Broadcom's earnings call, including fiscal 2027 AI sales guidance of over $100 billion, which is 20% above consensus, and noted that AI margins are expected to sustain despite mix changes, partly due to raised prices to Anthropic. Broadcom's impressive gross profit margin of 77% as of the last twelve months supports its pricing power in AI products, and the company has added a sixth hyperscaler customer while reaffirming Meta in XPU projects with visibility extending multiple years.
American multinational banking and financial services corporation
The Bank of America Corporation (Bank of America; often abbreviated BAC or BofA) is an American multinational investment bank and financial services holding company headquartered at the Bank of America Corporate Center in Charlotte, North Carolina, with investment banking and auxiliary headquarters ...
A semiconductor is a material with electrical conductivity between that of a conductor and an insulator. Its conductivity can be modified by adding impurities ("doping") to its crystal structure. When two regions with different doping levels are present in the same crystal, they form a semiconductor...
Broadcom Inc. is an American multinational designer, developer, manufacturer, and global supplier of a wide range of semiconductor and infrastructure software products. Broadcom's product offerings serve the data center, networking, software, broadband, wireless, storage, and industrial markets.
try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Oil prices add to gains as Middle East war escalates; supply fears mount Futures lower, oil rises amid Iran conflict - what’s moving markets Iran conflict latest: Hegseth says Iran conflict has "only just begun" Gold hands back gains as US dollar rebounds; Middle East war continues (South Africa Philippines Nigeria) BofA cuts Broadcom stock price target on lower sector multiples By Analyst Ratings Published 03/05/2026, 04:14 AM BofA cuts Broadcom stock price target on lower sector multiples 0 AVGO 1.18% Investing.com - BofA Securities lowered its price target on Broadcom (NASDAQ:AVGO) to $450 from $500 while maintaining a Buy rating on the $1.5 trillion semiconductor giant. The firm raised its fiscal 2026, 2027, and 2028 pro forma earnings per share estimates, excluding stock compensation expense, by 2%, 16%, and 37% respectively to $10.94, $17.05, and $23.21. The price target adjustment reflects lower sector multiples, with BofA now applying a 26x multiple versus 33x previously to calendar year 2027 estimated earnings per share of $17.00. Despite the multiple compression, InvestingPro data shows Broadcom trading at a PEG ratio of just 0.23, suggesting the stock remains attractive relative to its growth trajectory. However, the platform’s Fair Value analysis indicates the stock is currently overvalued. BofA cited several factors from Broadcom’s earnings call, including fiscal 2027 AI sales guidance of over $100 billion, which is 20% above consensus. The firm noted AI margins are expected to sustain despite mix changes, partly due to raised prices to Anthropic. The company’s impressive gross profit margin of 77% as of the last twelve months supports its ability to maintain pricing power in AI products. Broadcom added a sixth hyperscaler customer and reaffirmed Meta in XPU projects, with visibility now extending multiple years. The company indicated networking mix is expected to rise. BofA views the development...
