Analysts Reaffirm Broadcom on Accelerating AI Revenue as Investors Weigh Valuation
Fresh bullish calls follow guidance for $22 billion in Q2 sales alongside a sharp AI chip ramp.
Overview
- Broadcom posted record fiscal Q1 revenue of $19.3 billion, up 29% year over year.
- AI semiconductor sales reached $8.4 billion in Q1, rising 106% from a year ago.
- Management guided Q2 revenue to roughly $22 billion and projected $10.7 billion in Q2 AI chip revenue.
- Adjusted EBITDA in Q1 was $13.1 billion, about 68% of total revenue, reflecting exceptional profitability.
- Aletheia and Cantor Fitzgerald reiterated bullish views, with Cantor setting a $525 target and citing management’s outlook for AI revenue surpassing $100 billion in fiscal 2027, while some analysts flag valuation near a 62 P/E and potential CPO-related risks.