TLDR
- Broadcom (AVGO) dropped 2.82% in pre-market trading on September 2, 2025, despite strong analyst support
- Cantor Fitzgerald analyst C.J. Muse raised price target to $350 from $300, calling AVGO a “Top Pick”
- Goldman Sachs maintained Buy rating with $340 target, citing growth and innovation potential
- Wall Street consensus remains “Strong Buy” with 27 Buy ratings and 2 Hold ratings
- Custom Silicon revenue projected to reach $25-30 billion by 2026 and over $40 billion by 2027
Broadcom stock fell 2.82% in pre-market trading on September 2, 2025, even as analysts maintained their bullish stance on the semiconductor giant. The drop came ahead of the company’s Q3 FY25 earnings report scheduled for Thursday, September 4.
Cantor Fitzgerald analyst C.J. Muse boosted his price target to $350 from $300 while keeping an Overweight rating. He labeled AVGO as a “Top Pick” based on AI strength and recovery signs in core markets.
Muse ranks 130 out of more than 10,000 analysts tracked by TipRanks. His track record shows a 69% success rate with an average return of 27.70% per rating over one year.
The analyst expects a modest beat and raise for Q3 results. He sees upside potential led by Broadcom’s Semiconductor Solutions segment, particularly Custom Silicon chips.
These specialized processors target big customers and often result in large, long-term contracts. Muse pointed to strong demand from Google’s next-generation TPU v6 and the upcoming TPU v7p, which will ramp in the second half of the year.
AI Chip Momentum Building
Meta’s in-house MTIA chips are expected to scale more meaningfully in the October quarter. Investors will watch closely to see if current AI chip projects convert into high-volume orders.
Muse projects Custom Silicon revenue could hit $25-30 billion in 2026. By 2027, he estimates it could exceed $40 billion, helping Broadcom deliver earnings of $10 per share in 2026 and $13 per share in 2027.
The analyst also expects recovery signs in Broadcom’s cyclical chip business starting in the July quarter. This would mark the end of nine straight quarters of declines in this segment.
Goldman Sachs analyst James Schneider separately maintained a Buy rating with a $340 price target. He highlighted the company’s growth prospects and innovative product offerings.
Recovery on Multiple Fronts
Broadcom’s Infrastructure Software segment should remain stable and provide steady earnings, according to Muse. This stability helps balance the more volatile semiconductor business.
Wall Street maintains a Strong Buy consensus rating on AVGO stock. The rating is based on 27 Buy recommendations and two Hold recommendations.
The average price target sits at $313.63, indicating 5.5% upside potential from current levels. Forecast models anticipate AVGO trading between $296 and $348 in 2025.
Most analysts cluster their price targets in the $310-$315 range. This suggests moderate confidence in the stock’s near-term trajectory.
The semiconductor company continues to benefit from the AI boom. Custom Silicon chips for major tech companies represent a key growth driver.
Broadcom is set to report Q3 FY25 results after market close on Thursday, September 4, 2025.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
