Broadcom could rally from here as hyperscaler demand continues to increase, according to Jefferies. The bank reiterated its buy rating on the semiconductor stock and named it as a top pick. The bank also raised its price target to $480 per share from $415. Analyst Blayne Curtis’ updated price target represents upside of 32% from the stock’s Monday close. “While NVDA remains the leader and we still see upside there, AVGO has a greater magnitude of estimate upside as Google, Meta, and OAI ASICs ramp,” the analyst wrote. “Google has long been the main ASIC customer for AVGO but those volumes should become much more meaningful in C26/27.” AVGO YTD mountain AVGO YTD chart Curtis added that the amount of tokens Google process per month has risen to 1,300 trillion in October from 480 trillion April of this year. This should accelerate even more as the demand for artificial intelligence continues to grow. This “significant upside” caused the bank to make Broadcom its top pick, with Jefferies estimating $60 billion in revenue upside in 2027. “Google continues to drive the majority of this upside, but Meta and OpenAI start to layer in material volumes as well,” Curtis wrote. “We expect there could be even more upside to the TPU estimates with GOOG token usage continuing to climb and Anthropic using the TPU as well.” Shares of Broadcom have surged 56% this year.
