Broadcom CEO Compared to Steve Jobs for Memorability, Analyst Raises Target Price to $415

This content should not be construed as investment advice. The author does not hold a position in any of the companies mentioned.

The AI Landscape: Broadcom’s Impressive Earnings Report

The narrative surrounding artificial intelligence (AI) continues to gain momentum, and Broadcom Inc.(NASDAQ: AVGO) has provided compelling evidence to support this trend. The semiconductor giant’s recent fiscal Q3 2025 earnings report showcased an impressive 22% increase in year-over-year revenue, reaching $15.95 billion, and surpassing analyst expectations of $15.83 billion. In addition, the company exceeded projections for earnings per share (EPS) with a reporting figure of $1.69.

Innovative Developments in AI Technology

Throughout the year, Broadcom has rolled out significant advancements in its product offerings. Among these is the Tomahawk Ultra networking chip, which facilitates intra-data-center connectivity, along with the next-generation Jericho networking chip, designed specifically for large-scale, distributed AI clusters. These innovations underline Broadcom’s commitment to staying at the forefront of AI technology.

Astounding Growth in AI Semiconductor Revenues

Broadcom’s AI semiconductor revenue saw a remarkable boost of 63% year-over-year, totaling $5.2 billion. Further illustrating the company’s growth potential, it has raised its guidance for Q4, projecting an overall revenue of $17.4 billion, with AI semiconductor revenue expected to climb to $6.2 billion.

Analyst Insights and Future Projections

In light of these encouraging results, Ben Reitzes from Melius Research characterized Broadcom’s earnings call as “the most bullish and memorable call”in his experience, subsequently increasing the stock price target to $415 per share. This reflects strong confidence in Broadcom’s ability to capitalize on the expanding AI market.

Strategic Partnerships Driving Innovation

In addition to its stellar earnings report, it was revealed that OpenAI might invest $10 billion in designing an application-specific integrated circuit (ASIC) with Broadcom in the coming year. This follows a new $10 billion contract announcement made by Broadcom’s CEO during the earnings call, emphasizing the company’s ongoing commitment to innovation and partnership.

Goldman Sachs weighed in on these developments, noting:

“We believe the most significant development was Broadcom’s announcement that it has converted another new custom silicon customer focused on inference, which is expected to help drive ‘material’ upside to management’s prior expectation of AI Semiconductor revenue growth of ~60% in 2026.”

As the AI sector continues to evolve, Broadcom’s strong performance and strategic initiatives position it as a key player in this burgeoning industry.

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