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Broadcom is gaining momentum heading into its next earnings report, and Goldman Sachs thinks the stock could get a boost. Analyst James Schneider, who has a buy rating on chipmaker, lifted his target price to $435 from $380, which signals upside of 13% from Tuesday’s close. Broadcom is set to post earnings Dec. 11 “We expect sustained AI strength in 4Q, with 1Q guidance above the Street given robust spending at key customers — and we expect updated FY26 AI revenue guidance above 100% YoY,” he wrote. AVGO YTD mountain AVGO YTD chart The analyst sees AI revenue for fiscal year 2026 to come in at $45.4 billion, marking an approximate year-over-year rise of 128%. This could reach $77.3 billion in 2027, rising 70% year over year. Schneider’s target and estimate changes come during a strong week for Broadcom. The stock is up 13% week to date, following tech giant Alphabet. Broadcom helps the Google parent design its in-house specialized AI chips. The analyst noted that investors will also focus on Google and OpenAI contributions next year, as well as Broadcom’s margin progression in 2026. “We believe expectations are elevated heading into the quarter, and investors are positioned positively given strong peer results and positive datapoints related to key XPU customers, mostly notably Google following its latest Gemini 3 launch,” he said. “Given gross margin dilution from the custom XPU business, we expect focus on Broadcom’s margin progression in FY2026 as XPU revenue ramps (up over +160% YoY per our estimates).” Shares of Broadcom have surged 66% this year. Most analysts are bullish on Broadcom. Of the 49 covering it, 47 rate it a buy or strong buy, according to LSEG.
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