Broadcom Inc. (NASDAQ: AVGO) is finishing 2025 on the front foot. As of December 1, 2025, the stock is trading around $403, essentially at its 52‑week high of about $403 and up roughly 150% over the past 12 months, giving the company a market capitalization near $1.9 trillion. [1]
The rally is being driven by Broadcom’s role at the heart of the artificial intelligence infrastructure boom — especially its deepening partnership with Alphabet’s Google on custom Tensor Processing Units (TPUs) — and by a fresh wave of bullish analyst calls and institutional positioning released today, December 1. [2]
Below is a detailed look at Broadcom’s latest stock price action, new analyst forecasts, institutional flows, AI growth story, valuation debate, and the key catalysts to watch as investors head toward the company’s Q4 and full‑year 2025 earnings report on December 11, 2025. [3]
Broadcom stock today: price, performance and valuation
- Latest price: ~$402.96 as of early afternoon on December 1, 2025.
- 52‑week range: Low around $138.10, high about $403.00, meaning shares have nearly tripled from their 12‑month low. [4]
- Market cap: Approximately $1.9 trillion. [5]
- Trailing valuation:
- P/E: ~102.8 on trailing 12‑month earnings.
- Forward P/E: ~74.9, based on consensus forecasts.
- PEG ratio: Around 1.37, reflecting strong expected earnings growth relative to its high P/E. [6]
Fundamentally, Broadcom generated about $59.9 billion in revenue and $5.9 billion in net income over the last four quarters, for trailing earnings of $3.92 per share. Analysts expect EPS to climb around 18.6% next year, from $5.38 to $6.38. [7]
In other words, the market is paying a premium, growth‑style multiple for what it sees as a durable AI and networking infrastructure champion.
What changed on December 1, 2025: a wave of bullish analyst calls
BofA Securities: price target hiked to $460
The most eye‑catching move today came from BofA Securities, which raised its Broadcom price target to $460 from $400 while reiterating a Buy rating. [8]
Key points from BofA’s note:
- Broadcom’s growing role in Google’s TPU ecosystem is central to the thesis. Google’s Gemini 3 model was trained entirely on TPUs built around Broadcom technology, and BofA sees Google potentially renting TPU capacity to external customers over time. [9]
- The bank forecasts TPU average selling prices rising from roughly $5,000–$6,000 today to $12,000–$15,000 by 2026, with annual unit volumes climbing from about 2 million to over 3 million, and possibly up to 3.6–3.8 million if demand from Google plus external customers like Anthropic or Meta continues to accelerate. [10]
- Even with a higher mix of compute/ASIC products that slightly pressures gross margins, BofA notes Broadcom still posts extraordinary profitability, with gross margins above 77% and revenue growth above 28% year over year in recent periods. [11]
BofA also highlighted Broadcom’s new Brocade X8 directors and G820 56‑port switch, billed as the industry’s first 128G Fibre Channel platforms tailored for AI workloads, featuring quantum‑resistant encryption and embedded “SAN AI” capabilities for automated management. [12]
Morgan Stanley: AI TPU upside and a $443 target
A separate piece of research highlighted today comes from Morgan Stanley, where analyst Joseph Moore maintained an Overweight rating and raised his Broadcom target to $443 from $409 — about 10% upside from the prior close he was using. [13]
Moore’s thesis:
- Broadcom’s significant AI exposure, particularly via TPUs designed for Google, is a key driver of growth.
- He emphasized that Broadcom’s TPU business could, to some extent, replace other chip expectations (for example at Meta) but still drives a compelling overall growth story. [14]
Goldman Sachs, Jefferies and Raymond James join the AI bull case
Recent weeks have brought additional upside revisions:
- Goldman Sachs lifted its price target from $380 to $435 on November 25, calling Broadcom’s setup into Q4 “too strong to ignore” and highlighting the stock as one of Wall Street’s best‑performing AI plays heading into 2026. [15]
- Jefferies has reportedly pushed its target even higher, to around $480, focusing on the potential of Broadcom’s AI ASIC (custom chip) business. [16]
- Raymond James assumed coverage with an Outperform rating, also citing the company’s strong positioning across AI and data‑center infrastructure. [17]
In short, major Wall Street firms are converging on a bullish AI narrative, even as they acknowledge the stock’s lofty multiple.
Earnings momentum and Broadcom’s AI‑driven growth story
Broadcom’s fundamentals have given analysts plenty of justification for those upgrades:
- Q2 2025: Revenue reached about $15.0 billion, up 20% year over year, with adjusted EBITDA up 35% to $10.0 billion, reflecting strong operating leverage. [18]
- Q3 2025 (reported September 4):
Management has guided for Q4 2025 revenue of about $17.4 billion, implying roughly 24% year‑over‑year growth, with consensus modeling EPS around $1.52 for the quarter. [21]
Broadcom’s AI engine spans:
- Custom accelerators and TPUs for hyperscalers, especially Google, tied to large‑scale model training such as Gemini 3. [22]
- High‑speed networking and Fibre Channel gear for AI data centers, including the newly announced 128G platforms. [23]
- Its ongoing integration of VMware, which expands recurring infrastructure software revenue but also creates integration and accounting complexity that analysts will watch closely in the Q4 report. [24]
Several recent commentaries — including pieces from Forbes, The Motley Fool and Seeking Alpha — argue that Broadcom could be one of the biggest winners from a “GPU‑to‑TPU” shift in AI infrastructure, and even speculate that the stock could eventually trade closer to $700 if its custom AI chip partnership with Google scales as hoped. [25]
How the market is forecasting Broadcom’s share price
Street‑level price targets
Different data providers compile slightly different sets of analyst estimates, but they tell a consistent story:
- MarketBeat: 35 analysts with an average 12‑month price target of about $377.6, high $460, low $210 — implying modest downside from today’s ~$403 level, but with a wide range of outcomes. [26]
- StockAnalysis: 28 covering analysts, “Strong Buy” consensus rating, average target around $357, with a range from $210 to $450, again showing a slight average downside but robust top‑end upside. [27]
- MLQ.ai: Consensus target near $402, with a high of $460 and low of $295. [28]
- StocksGuide: 44 analysts, average target roughly $408, high about $504, low around $220; 51 rate the stock a Buy, 3 a Hold, and 0 a Sell. [29]
Taken together, the average target cluster in the high‑$370s to low‑$400s, very close to where the stock trades today, while the bullish tail of the distribution (BofA, Jefferies and others) extends into the $460–$480 region.
Short‑term technical outlook
On the technical side, StockInvest.us — which focuses on chart‑based signals — recently:
- Classified AVGO as a “Buy candidate” (downgraded from “Strong Buy” after a major run‑up).
- Noted that the stock sits in the upper part of a strong rising trend, with support from accumulated volume near $378–$370.
- Projected that, with 90% probability, the stock might trade in a $381.8–$446.4 range over the next three months, implying around 10.5% potential upside from the November 28 close of $403.37. [30]
For today, the same service expected a “fair opening price” around $401.30 and an intraday trading range between roughly $395.1 and $411.6 — very close to where the market actually opened and traded. [31]
A sharply different view: intrinsic value around $196
Not everyone thinks Broadcom is fairly valued at $400‑plus.
A new GuruFocus discounted earnings (DCF) analysis published this morning estimates Broadcom’s intrinsic value at about $196.56 per share, versus the current price near $403 — a negative “margin of safety” of about 105%, implying the stock is more than twice its calculated fair value. [32]
Using a traditional free‑cash‑flow‑based DCF, the same source arrives at an even lower value near $161 per share, reinforcing the argument that AVGO is significantly overvalued if future growth fails to meet optimistic assumptions. [33]
This highlights the core tension around Broadcom today: valuation vs. AI optionality.
Institutional money flows: who’s buying and who’s trimming?
December 1 has also brought a flurry of 13F‑related headlines that shed light on how big investors are positioning around AVGO:
- New and increased positions
- Solidarity Wealth LLC disclosed a new position of 7,021 shares in Q2, worth roughly $1.94 million at the time of purchase. [34]
- Capital Counsel LLC NY bought a new stake of 800 shares, valued around $221,000, also in Q2. [35]
- A MarketBeat roundup notes that major institutions such as Norges Bank, Nuveen, Price T. Rowe, Vanguard and Goldman Sachs have all taken or expanded large positions over recent quarters, with overall institutional ownership at about 76.4% of outstanding shares. [36]
- Partial profit‑taking
- Fisher Asset Management trimmed its Broadcom stake by about 0.3%, selling roughly 38,108 shares in Q2, but still holds 12.37 million shares worth around $3.41 billion, making AVGO its 16th‑largest position at about 1.4% of its portfolio. [37]
- Loomis Sayles & Co. reduced its stake by 19.1% to 59,221 shares, valued around $16.3 million. [38]
Net‑net, the picture is of very heavy institutional ownership, with some large holders locking in gains after a huge run, while others are initiating or adding positions on the AI thesis.
Key catalysts and risks heading into 2026
1. Q4 2025 earnings (December 11) and 2026 guidance
Broadcom is scheduled to report its fourth‑quarter and full‑year 2025 results on December 11, 2025, after the market close. [39]
Investors will be focused on:
- Whether Broadcom hits or exceeds its Q4 revenue guidance (~$17.4B). [40]
- Updated commentary on AI chip and TPU demand from Google and other hyperscalers.
- Progress on VMware integration, including how restructuring and integration costs are treated in GAAP vs. non‑GAAP results — an area that recent analysis has flagged as worth watching. [41]
A strong beat plus upbeat 2026 guidance could encourage investors to lean into the BofA/Jefferies‑style bull case, while any sign of slowing AI orders or margin pressure could make the GuruFocus valuation caution look more prescient.
2. AI infrastructure competition and customer concentration
Broadcom’s AI roadmap is tightly linked to a handful of very large customers:
- Google for TPUs and AI networking. [42]
- Potential external users of TPU‑as‑a‑service, including names like Anthropic or Meta, if Google opens up capacity as BofA expects. [43]
- The broader AI ecosystem, where Nvidia, AMD and custom cloud chips all compete for data‑center budget.
A Barchart analysis recently argued that Broadcom could even benefit from OpenAI’s new hardware deal with AMD, as AI workloads expand and demand for networking and custom silicon spills over into Broadcom’s product lines — potentially making AVGO “cheap” relative to its AI opportunity. [44]
The risk, of course, is that hyperscalers shift more of their AI silicon design fully in‑house, or that AI spending growth slows, leaving Broadcom’s high multiple exposed.
3. Valuation risk and potential multiple compression
From a pure valuation standpoint:
- Traditional DCF models (like the one from GuruFocus) see Broadcom as significantly overvalued, with intrinsic value estimates between $161 and $197 per share versus a market price near $403. [45]
- Street targets, on average, cluster near the current price, implying limited upside unless earnings and AI demand surprise materially to the upside. [46]
If AI enthusiasm cools or Broadcom’s growth slows toward more typical semiconductor levels, the stock could face multiple compression even if earnings continue to grow.
Broadcom stock today: balanced take for investors
Putting it all together, here’s how Broadcom looks on December 1, 2025:
Bullish case
- Near‑record results and guidance: revenue growing 20–24% year over year, with rising profitability. [47]
- Deep strategic role in AI infrastructure, especially via Google TPUs and AI networking gear. [48]
- A long list of major Wall Street firms — BofA, Morgan Stanley, Goldman Sachs, Jefferies, Raymond James and others — leaning bullish with targets up to $460–$480, and columnists speculating about even higher levels long‑term. [49]
- Technicals that remain constructive despite the huge run, with short‑term models still calling AVGO a Buy candidate. [50]
Cautious case
- A triple‑digit trailing P/E and high‑70s forward P/E, far above the broader market. [51]
- Fundamental valuation models that see little or no margin of safety, with DCF estimates less than half of the current price. [52]
- Heavy reliance on a small set of mega‑cap customers and on continued AI capex growth at a breakneck pace. [53]
- Integration and accounting questions around VMware and recurring restructuring costs that could complicate earnings quality. [54]
For growth‑oriented investors who believe the AI infrastructure cycle is still in its early innings — and who are comfortable with volatility and premium valuations — Broadcom is being treated by much of Wall Street as a core AI compounder heading into 2026.
For more valuation‑sensitive or income‑focused investors, the combination of a sub‑1% dividend yield, extremely high multiples and DCF models flagging overvaluation may argue for caution or for waiting until after the December 11 earnings report to see whether fundamentals catch up to the stock price.
Either way, AVGO is likely to remain one of the most closely watched AI stocks in the market over the coming weeks, with its Q4 call and any new details on Google, VMware and broader AI demand acting as major catalysts.
References
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