Could Broadcom Stock Hit $500 Amid High Demand for AI Chips?

Chip stock Broadcom has powered higher recently amid the global AI infrastructure buildout. Over the last year, it has climbed from around $230 to near $415¹.

Could $500 be a possibility in the future? Many Wall Street analysts seem to believe so – here’s a look at some recent price targets for the stock.

Broadcom Price Forecasts

Since Broadcom’s last earnings report on March 4, numerous Wall Street firms have posted price targets² for the stock of $500 or higher. Among those firms with $500+ price targets are:

• Baird – $630

• Bernstein SocGen – $525

• Citi – $500

• Jefferies – $500

• Rosenblatt – $500

Note that the average price target is a bit lower, at $476. That still implies upside of around 15%, however.

Source: Google Finance, as of May 13, 2026 

Why Wall Street is Bullish on Broadcom

It’s not hard to see why analysts are so bullish on Broadcom right now.

For a start, recent earnings have been very strong. In Q1 of fiscal 2026, for example, revenue was up 29% year-over-year to a record $19.3 billion. Fueling this growth was AI revenue, which grew 106% year-over-year to $8.4 billion, driven by robust demand for custom AI accelerators and AI networking³. Looking ahead, the company said that it expects AI revenue of $10.7 billion this quarter (versus $4.4 billion in Q2 2025).

Source: LSEG, as of May 14, 2026 

Secondly, Broadcom is doing deals with all the big names in the AI space, ensuring that its custom chips (“XPUs”) and high-performance networking infrastructure remain the bedrock of the global AI buildout. For example, in early April, it announced that it had signed a long-term agreement with Google to develop and supply future generations of custom AI chips through 2031⁴.

Shortly after this, it announced that it will work closely with Meta Platforms to produce several generations of custom AI processors. This tie-up will last until 2029 and includes an initial commitment of over one gigawatt of computing capacity⁵.

Also in April, Broadcom announced that it had expanded its deal with Anthropic. This will see the company provide the AI powerhouse with access to around 3.5 gigawatts worth of computing capacity⁶.

Third, the stock’s valuation doesn’t look particularly stretched. With analysts expecting earnings per share of $17.90 for the fiscal year starting in November, the forward-looking P/E ratio is only around 23.

Given this undemanding valuation, there is scope for stock price appreciation as revenues and earnings continue to rise. Note that if the stock was to hit $500, the forward-looking P/E ratio would still only be around 28.

A Chip Stock with Potential

Now, of course, there are no guarantees that the stock will hit $500. Risks to the bull case include a sudden slowdown in AI spending, increased competition in the AI chip space, and tech sector/general market weakness.

However, with revenues soaring, and analysts raising their price targets, this could be a stock to watch as the AI revolution unfolds. Like other chip stocks such as Nvidia and AMD, it appears to have potential.

Footnotes:

¹Google Finance, as of May 14, 2026

²Investing.com, as of May 14, 2026

³Broadcom, Broadcom Inc. Announces First Quarter Fiscal Year 2026 Financial Results and Quarterly Dividend, as of March 4, 2026

⁴Reuters, Broadcom signs long-term deal to develop Google’s custom AI chips, as of April 7, 2026

⁵Broadcom, Broadcom Announces Extended Partnership with Meta to Deploy Technology to Support Multi-Gigawatts of Meta’s Custom Silicon, MTIA, as of April 14, 2026

⁶Anthropic, Anthropic expands partnership with Google and Broadcom for multiple gigawatts of next-generation compute, as of April 6, 2026