Overview
- Broadcom shares rose about 4% to 5% and traded near a 52-week high after Wells Fargo raised its price target to $545.
- Wells Fargo introduced a model that links AI chip demand to data center power capacity, estimating Broadcom’s AI revenue could run 30% to 40% above prior Wall Street views.
- Citi this week lifted its target to $500, named Broadcom its top semiconductor pick for 2026, and forecast April and July results modestly above consensus on stronger AI demand.
- Management has guided fiscal Q2 revenue to roughly $22 billion and AI chip sales to about $10.7 billion, with results due June 3.
- Broadcom cites a $73 billion AI backlog and key customers such as Google, Meta, Anthropic and OpenAI, while reports of a roughly $35 billion private-credit deal and an $18 billion OpenAI-linked funding hurdle point to heavy financing needs.