AVGO Stock Forecast: AI Tailwinds and Software Synergies Drive the Next Phase of Growth

Levi FuThis AVGO Stock Forecast article was written by Levi FU – Financial Analyst at I Know First.

Summary

  • Revenue more than doubled from $23.9B in 2020 to $57.0B in LTM 2025, fueled by the VMware acquisition and booming AI infrastructure demand. 
  • Gross margin improved to 77% as Broadcom shifted toward high-margin software and custom silicon; EBITDA remains strong with net debt/EBITDA under 2x.
  • Fortinet continues to gain market share, leveraging cost-efficient proprietary ASIC technology and expanding cloud security offerings.
  • Analyst average price target stands at $286.36, with current price near $274.38; a breakout above $280 could drive upside toward $300–$320.

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AVGO Stock Forecast: Road to the Top

Meiru ZhongThis AVGO Stock Forecast article was written by Meiru Zhong – Financial Analyst at I Know First.

Summary

  • Broadcom Inc.’s revenue growth is back in double-digit mode with revenue at $33.2 billion and net margin at 35% in FY2022. The trend continued in Q2 2023 with quarterly revenue at $8.8 billion, up 8% from the previous year.
  • Third quarter revenue is expected to be around $8.85 billion, an increase of 5% from the prior year, and adjusted EBITDA remains about 65% of projected revenue.
  • A quarterly cash dividend of $4.60 per share will be paid on June 30, 2023 and $3,420 million will be spent on share buybacks and eliminations.
  • Broadcom has acquired VMware and deal will be closed in FY 2023. The merger will give Broadcom a balanced product portfolio and scale growth.  
  • DCF estimates AVGO stock will grow to $965, a 12% upside potential for the year 2023.

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