Shares of Broadcom (AVGO) are poised to hit record highs, fueled by the semiconductor company’s growing presence in the AI market, according to analysts at HSBC.
Last month, HSBC raised its price target for Broadcom to $400, implying about 45% upside from current levels.
The upgrade reflects growing confidence in Broadcom’s ability to expand its customer base among hyperscalers, large-scale cloud providers with massive data processing needs.
HSBC believes Broadcom could secure up to seven hyperscaler clients, significantly expanding its AI footprint.
Broadcom previously estimated its AI opportunity at $60 billion to $90 billion by 2027, based on just three hyperscaler customers. Securing more could dramatically accelerate its growth trajectory.
Surging demand for AI infrastructure is also expected to enhance Broadcom’s pricing power. HSBC forecasts that Broadcom’s ASIC (application-specific integrated circuit) pricing could more than double over the next two years.
While HSBC’s price target is notably bullish, its thesis is echoed by others.
Christopher Rolland of Susquehanna, for example, estimates Broadcom could capture around 11% of the global AI chip market over the next five years, second only to Nvidia’s 67% market share.
AGVO stock tracks Big Tech climb, rebounds sharply after April slump
Broadcom shares have largely mirrored the performance of Big Tech in 2025, climbing nearly 22% year-to-date to trade around $274 as of Friday’s close.
The rally has allowed Broadcom to expand its market cap to around $1.3 trillion, making it one of the world’s largest public companies.
But the headline gain masks an extremely turbulent stretch. The stock tumbled in early April following renewed tariff threats from former President Trump, only to rebound 87% from its April 4 low.
Last month, Broadcom reported better-than-expected Q2 results, with earnings per share of $1.58 on $15 billion in revenue. Analysts had forecast earnings of $1.56 per share and $14.99 billion in sales.
AI-related sales were particularly strong, reaching $4.4 billion for the quarter. That growth was tied to strong sales for Broadcom’s networking parts, which connect server clusters.
Looking ahead, the company expects $15.8 billion in revenue for Q3, driven in part by rising demand for AI infrastructure. The forecast was slightly higher than the $15.7 billion that analysts expected.
CEO Hock Tan emphasized Broadcom’s long-term focus on AI acceleration: “We continue to make excellent progress on the multiyear journey of enabling our three customers and four prospects to deploy custom AI accelerators.”
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