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Broadcom Rallies on Fresh AI Endorsements as It Readies 200T‑Era Hardware Demos

Analysts cite durable AI infrastructure demand, lifting forecasts tied to guidance for more than $100 billion in FY27 AI revenue.

Overview

  • Broadcom shares rose about 4.7% to $321.15 after Bernstein’s Stacy Rasgon rated the stock outperform and called the valuation attractive, projecting EPS of $20 or more by 2027.
  • Cantor Fitzgerald kept an Overweight rating with a $525 target on March 5, raised 2027 EPS estimates to $20, and said $23–$25 is attainable, with networking potentially contributing up to 40% of AI revenue and gross margins around 72%–74%.
  • Rosenblatt lifted its price target to $500 with a Buy rating, citing CEO Hock Tan’s improved FY27 visibility and the company’s trajectory to exceed $100 billion in AI chip revenue.
  • Broadcom detailed an expanded AI infrastructure portfolio on March 12 for the 200T era and scheduled OFC 2026 demos of a 3.5D XPU, a 102.4T Ethernet switch with co‑packaged optics, 400G‑per‑lane optical DSPs, 200G‑per‑lane retimers and AEC, and PCIe Gen6 switches and retimers.
  • The company said it is working with more than 30 partners on interoperable, low‑power solutions for large AI clusters, highlighting a shipping 102T Ethernet switch and first‑to‑market 400G‑per‑lane optical DSPs.