Broadcom stock has climbed almost 90% over the past 52 weeks, and Citi says the rally may have more room to run. Ahead of second-quarter earnings, the bank lifted its price target for AVGO shares to $500 and said the company’s total AI revenue could reach $115 billion in 2027.
The call comes as Broadcom CEO Hock Tan said in March 2026 that the company is positioned to generate more than $100 billion in AI revenue from chips in 2027. Citi went further, saying AI revenue from chips could hit $180 billion in 2028, a forecast that underscores how central the business has become to the Palo Alto company’s valuation.
Broadcom’s rise has been driven by custom AI chip agreements with Alphabet’s Google, Meta, Anthropic, OpenAI and two unnamed customers. The company, which makes semiconductor and infrastructure software solutions across networking connectivity, wireless device connectivity, servers and storage systems, broadband and industrial markets, has built a portfolio of 19,000 patents and spent $11 billion on research and development in FY25.
The numbers behind the business have been strong. Broadcom reported $63.9 billion in revenue in FY25 and $26.9 billion in free cash flow. In Q1 FY26, free cash flow reached $8 billion, while the company spent $3.1 billion on cash dividends and $7.8 billion on stock repurchases, giving it room to keep returning capital even as it pushes deeper into AI chips.
That spending power matters because the company’s growth story is also capital intensive. A possible $35 billion financing from Apollo Global Management and Blackstone could provide a larger cash buffer, adding another layer of support as Broadcom expands its AI chip business. The stock’s recent move reflects how investors are weighing that growth against the scale of the opportunity.
There is still one question that will shape the next leg of the trade: whether Broadcom can keep turning custom AI demand into sustained revenue at the pace investors and analysts now expect. For now, 42 analysts covering AVGO still rate the stock a consensus Strong Buy.
