Bank of America resets Broadcom stock price target
Vuk Zdinjak
Tue, December 2, 2025 at 12:03 AM EST
3 min read
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Over the past six months, Broadcom’s stock has gained 59%. A significant boost to the stock in September was the Q3 earnings reveal that Broadcom secured $10 billion worth of orders for artificial intelligence racks, based on the company’s XPUs (XPUs are custom AI accelerators) from OpenAI.
The recent release of Google Gemini 3 AI model was 100% trained on Google's Tensor Processing Units (TPUs), as reported by CNBC. This was good news for Broadcom, as the company helps Google with the design of these chips. By training their frontier model on TPUs, Google demonstrated that Nvidia GPUs aren't necessary for developing advanced AI.
Meta clearly took notice of Google's success, as it is rumored to be in talks with Google to spend billions of dollars on Alphabet's TPUs for use in its data centers starting from 2027, as reported by Reuters.
Bank of America analyst Vivek Arya and his team updated their opinion on Broadcom stock in response to the Gemini 3 being 100% trained on TPUs, and the rumored deal between Google and Meta.
Bank of America raises Broadcom price target
Analysts said that Google's increasing TPU leverage is a positive for its key design partner Broadcom (AVGO).
They raised their sales estimates for Broadcom for 2025, 2026, and 2027 by +0 %, +2 %, and +4 %, to $63 billion, $88 billion, and $120 billion, respectively.
The team noted that if Google were to go beyond renting out the TPUs from within the Google Cloud Platform and sell the chips directly to customers, that could create new competition for Broadcom's other custom silicon customers, such as Meta, ByteDance, and OpenAI.
They said that Google might also add MediaTek to its design partner list for next-gen TPUv8 (high-end chip version would be TPUv8AX with Broadcom, and low-end chip would be TPUv8X with MediaTek), potentially reducing Broadcom's share.
In a research note shared with TheStreet, Arya reiterated a buy rating and raised the target price from $400 to $460, based on a 33 multiple of his estimate for the price-to-earnings ratio for calendar year 2027.
Analysts noted downside risk factors for Broadcom:
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Semiconductor cycle risks
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High exposure to Apple and Google with potential design out risks
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Competitive risks in networking, smartphone, storage, enterprise software markets
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Frequent acquirer of assets, which increases financial and integration risks
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Large $60 billion net-debt
Broadcom’s recent activity
Broadcom launched Brocade X8 Directors and Brocade G820 56-port switch. According to the company, they are the industry’s first 128G Fibre Channel platforms designed for today’s mission-critical workloads and enterprise AI applications.
The Brocade Gen 8 portfolio features quantum-resistant 256-bit encryption and other post-quantum cryptography algorithms to protect sensitive data and infrastructure from future quantum computers.
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The company plans to expand its strategic partnership with NEC Corporation. NEC will implement VMware Cloud Foundation (VCF) into its IT systems. This will enable NEC to provide a higher quality of service when delivering VCF-based solutions to customers.
Broadcom is also advancing an open, extensible ecosystem for VCF, enabling customers to build, connect, protect, and extend their private clouds.
“The momentum behind VMware Cloud Foundation 9.0 is undeniable. It's a platform that's redefining how organizations approach their private cloud journey, offering a consistent operating model that spans data centers to the edge,” said Paul Turner, Chief Product Officer, VMware Cloud Foundation Division, Broadcom. “By fostering an open VCF ecosystem, we're empowering businesses to build modern private clouds that align with their strategic needs, ensuring they can leverage the technologies required for their unique environments.”
Related: Goldman Sachs, JPMorgan and BofA drop verdicts on Nvidia earnings
This story was originally published by TheStreet on Dec 2, 2025, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.
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