New York, May 14, 2026, 12:24 EDT
- Broadcom hovered around $436 on Thursday, having reached $439.70 earlier in the session. That move lifted its market cap past $2.1 trillion.
- Broadcom’s fiscal Q2 report lands June 3, with the company previously guiding to around $22 billion in revenue and adjusted EBITDA close to 68% of that top line.
- Analyst upgrades have pushed things higher, yet the valuation debate sticks around following a steep one-year surge.
Broadcom climbed roughly 4.6% by midday Thursday, reaching a new record as investors rotated into the AI infrastructure heavyweight ahead of its June 3 earnings. The stock last traded at $436.03, not far off its session peak of $439.70.
The timing is key here. Broadcom has said it plans to release its fiscal second-quarter numbers after the bell on June 3. Management is set to talk at 2 p.m. Pacific, 5 p.m. Eastern. Investors will be watching to see if appetite for the company’s AI chips and networking hardware still tops the higher bar set by Wall Street.
Analyst calls were stacked up ahead of the latest move. Wells Fargo hiked its price target to $545 from $430, according to Investing.com, while Wolfe Research went to $500 from $420. Citi stuck with Broadcom as its top semiconductor pick for 2026, also assigning a $500 target. Citi’s Atif Malik pointed to improved earnings visibility ahead of the June 3 report.
Back in March, Broadcom posted first-quarter revenue of $19.31 billion—a jump of 29% from the same period last year—and delivered non-GAAP earnings at $2.05 per share. The company’s outlook for the current quarter? Revenue in the neighborhood of $22 billion, pointing to a 47% year-over-year climb.
Chief Executive Hock Tan reported first-quarter AI revenue hit $8.4 billion, up 106% from a year ago, and noted “AI revenue growth is accelerating.” Chief Financial Officer Kirsten Spears pointed to consolidated revenue reaching a “record $19.3 billion.” Broadcom Inc.
It’s not all about generic chips here. Broadcom’s lineup includes custom AI accelerators designed for particular customers’ artificial-intelligence tasks, plus networking hardware that shuttles data among servers in sprawling AI data centers. Most buyers? Hyperscalers — that is, the giants running massive cloud and internet platforms.
OpenAI figures into the backdrop here. Back in October, Broadcom and OpenAI announced a plan to roll out 10 gigawatts’ worth of custom AI accelerators, aiming to start deployment in the latter half of 2026 and wrap things up by the close of 2029. Sam Altman, OpenAI’s CEO, described the deal as a “critical step in building the infrastructure needed to unlock AI’s potential.” Broadcom Inc.
The Nvidia matchup only tells part of the story. Nvidia keeps a lock on the general-purpose AI accelerator market, but Broadcom is betting on custom chips and networking gear tailored for big names—think Google, Meta, Anthropic, OpenAI. Malik pointed to Google’s longstanding deal with Broadcom, calling it an edge that would make “it difficult for the competition to catch up technologically.” TheStreet
Valuation remains the sticking point. Simply Wall St, in a Thursday note, highlighted a widely used fair-value case that prices Broadcom at $480—which would mean the stock is 13.2% undervalued compared to its last close at $416.79. Still, the share price sits at 79 times earnings, well above the U.S. semiconductor group’s 63.4 times.
Still, risks remain. That valuation note pointed out the market could be baking in plenty of optimism already—meaning any stumble in growth or margins could sting. On May 9, a Seeking Alpha analysis also pointed to potential supply snags at TSMC, and issues with components like lasers and printed circuit boards, all of which could drag on AI revenue conversion.
Wall Street keeps tilting bullish. Out of 42 analysts tracking Broadcom, 35 have it at “Strong Buy,” while three go with “Moderate Buy” and four suggest “Hold,” according to Barchart. The average target stands at $469.94, with the highest estimate reaching $630. Barchart.com
There’s also the draw of cash returns. Broadcom posted $8.01 billion in free cash flow for its first quarter, delivered a 65-cent-a-share dividend, and signed off on a fresh $10 billion buyback program running through 2026.
Now, all eyes shift to June 3. If Broadcom delivers a beat, bulls will likely point to AI demand, custom silicon and VMware-driven software margins as justification for the current valuation. On the flip side, a cautious outlook could challenge just how much more patience investors have, especially after the stock’s push into uncharted highs.
