HSBC Raises Broadcom (AVGO) Price Target on AI ASIC Growth Outlook

On June 2, HSBC expert Frank Lee raised the terms people connected Broadcom Inc. (NASDAQ:AVGO) to $600.00 (from $450.00) portion maintaining a Buy rating. The bullish lawsuit for Broadcom is based connected its ASIC gross growth, noting however concerns astir losing Google’s concern look mostly overdone.

Several large lawsuit wins are anticipated to fortify the company’s ASIC gross momentum, peculiarly from the 2nd fractional of F2026. Broadcom is acceptable to proviso Google’s TPU v7, which volition apt transportation a higher ASP than v6. Moreover, Meta is besides ramping its ASIC, noted HSBC.

Besides these names, Anthropic and OpenAI person besides been added by AVGO nether a multi-year GW deployment agreements, acceptable to commencement successful FY26 and FY27 respectively.

“Therefore, we expect momentum for ASIC gross to commencement materially ramping done 2H FY26 into FY27 and beyond. We judge Broadcom has procured incremental CoWoS capableness from suppliers specified arsenic Amkor and ASE – we present estimation 260k wafers successful FY26 and 480k wafers successful FY27. Hence, we rise our FY26e/FY27e ASIC gross to USD46.0bn/USD100.2bn, 23%/26% higher than the Street.”

HSBC besides addressed immoderate marketplace concerns astir the institution losing Google’s TPU concern successful 2028. These concerns person been dismissed considering however some companies person a proviso statement that runs till 2031.

Broadcom is simply a exertion institution uniquely positioned for the AI revolution, acknowledgment to its customized spot offerings and networking assets.

While we admit the imaginable of AVGO arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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