Broadcom Stock Price Prediction: Where Will AVGO Be in 3 Years? Broadcom (AVGO) reported first-quarter fiscal year 2026 revenue of $19.31 billion, a 29.5% increase compared to the same period last year. AI semiconductor revenue reached $8.4 billion, up 106% year-over-year, while free cash flow totaled $8.01 billion. The company maintained a record 68% adjusted EBITDA margin, reflecting strong operational efficiency. These results highlight Broadcom’s growth in AI-driven markets, which now account for a significant portion of its revenue. The stock, currently trading at $322.51, is 14% below its 52-week high of $412.95 despite robust business expansion. Analysts at 24/7 Wall St. set a price target of $352.37, implying a 9.26% upside over the next year. The model assigns a 90% confidence level to this projection, citing AI revenue acceleration and a $73 billion AI backlog. However, valuation concerns persist, with the stock trading at a 63x trailing P/E multiple. Broadcom’s recent earnings report underscored its momentum. Revenue exceeded expectations by $190 million, with non-GAAP diluted EPS of $2.05 surpassing the $2.02 estimate. AI semiconductor revenue hit $8.4 billion, surpassing the company’s own forecast, and adjusted EBITDA margins remained at a record 68%. Free cash flow rose 33.21% year-over-year, driven by strong cash generation from AI and other high-margin segments. The bull case for Broadcom hinges on its AI revenue trajectory. CEO Hock Tan has publicly committed to exceeding $100 billion in annual AI sales by 2027. Q2 FY2026 guidance projects AI semiconductor revenue of $10.7 billion and total revenue of approximately $22 billion, a 47% year-over-year increase.#google #broadcom #hock_tan #24_7_wall_st #ai_semiconductor
