Broadcom Shares Rise 2.9% As Analyst Sets Jaw-Dropping $600 Price Target After Earnings Amid AI Boom

PALO ALTO, Calif. — Shares of Broadcom Inc. climbed $10.31, or 2.88%, to $368.20 as of 10:48 a.m. ET Tuesday, extending a recovery following the company's fiscal third-quarter earnings report last week, as Wall Street continues digesting a striking new price target from one of the semiconductor sector's most closely watched analysts.

Broadcom reported earnings on Sept. 2, delivering results that beat Wall Street expectations across most key metrics even as the stock initially dropped following the report. Semiconductor revenue more than tripled to $16.7 billion, exceeding the $15.2 billion average analyst estimate compiled by StreetAccount, while the company's infrastructure software business generated $8.75 billion, slightly below the $8.82 billion consensus estimate.

Despite the overall beat, two factors weighed on investor sentiment immediately following the report. Broadcom's fourth-quarter revenue guidance of approximately $34.8 billion came in slightly below the $35.03 billion Wall Street had projected, and the broader semiconductor sector was already experiencing a period of profit-taking following an extended rally, according to reporting from TheStreet.

Despite that initial pullback, Cantor Fitzgerald analyst C.J. Muse responded to the results by significantly raising his price target on the stock, lifting it to $600 from $525 while maintaining an Overweight rating, according to Investing.com. That target sits roughly 68% above where Broadcom shares were trading at the time of the upgrade, a notably wide margin for a company already valued at approximately $1.75 trillion. Muse, who covers the technology sector and has logged 321 individual stock ratings with roughly a 71% success rate according to tracked performance data, argued that the broader market has treated Broadcom with excessive caution given the size and visibility of the company's order backlog.

Broadcom CEO Hock Tan offered additional detail on the company's growth trajectory during the earnings conference call, highlighting expanding partnerships tied to the company's custom AI chip business. Tan said Broadcom expects to accelerate shipments of Google's Ironwood tensor processing units to Anthropic, along with TPU 8i chips destined for Google itself, telling analysts the company will deliver tens of billions of dollars worth of processors to Google annually over the next several years.

According to Tan, Broadcom is targeting deployment of 5 gigawatts of TPU 8i chips for Anthropic in 2027, with visibility toward delivering an additional 10 gigawatts beyond that initial commitment. Tan also said OpenAI is preparing to tape out its second-generation custom chip developed in partnership with Broadcom, known as Jalapeno, with the two companies already working on plans for a third version. Broadcom is targeting a 1.3 gigawatt deployment of Jalapeno chips in 2027, with a longer-term line of sight toward more than 5 gigawatts across that chip family.

During the same quarter, Broadcom also touted its custom Jalapeno chip partnership with OpenAI more broadly, while separately noting that Apple had agreed to increase its spending with Broadcom specifically tied to U.S.-based chip production.

Broadcom's own forward guidance points to a dramatic acceleration in AI-related chip revenue over the coming years. According to figures cited by Yahoo Finance, the company's recent forecasts project AI chip revenue reaching $115 billion in fiscal 2027 and climbing further to $230 billion by fiscal 2028, underscoring the scale of growth the company anticipates as major technology companies continue investing heavily in custom AI infrastructure.

Despite that bullish long-term outlook, Broadcom shares have lagged the broader market for much of 2026. As of last Wednesday's close, ahead of the earnings report, Broadcom shares had gained approximately 6% for the year, compared with a roughly 12% gain for the broader S&P 500 index over the same period, according to CNBC's reporting on the earnings results. That relative underperformance stands in contrast to the stock's dramatic longer-term run, having climbed more than sixfold since the end of 2022, a surge that coincided with the emergence of ChatGPT and the broader wave of generative AI investment that has since reshaped the semiconductor industry.

Broadcom's stock has continued showing considerable volatility even in the days immediately following its earnings report. According to Nasdaq data, Broadcom shares dropped roughly 9.7% over a recent three-month stretch, underperforming the broader Zacks Computer and Technology sector's 0.9% return over the same period, even as the stock has continued attracting bullish analyst commentary in the aftermath of last week's results. The stock's 52-week range spans from a low of $289.96 to a high of $495.00, illustrating the significant price swings the shares have experienced over the past year amid shifting sentiment toward AI-related chip stocks more broadly.

Broadcom has separately announced a quarterly cash dividend of $0.65 per share, with an ex-dividend date of Sept. 21, continuing the company's practice of returning capital to shareholders even as it invests heavily in expanding its AI chip manufacturing capacity and partnerships.

Competition within the AI chip sector has continued intensifying, with Broadcom facing increasing pressure from rivals including Nvidia and Marvell Technology as all three companies race to capture a larger share of the rapidly growing market for AI infrastructure hardware. Some analysts, including those at Goldman Sachs, have weighed in directly comparing Broadcom against Marvell following each company's respective earnings reports, while other coverage has directly compared Broadcom's custom, application-specific chip approach against Nvidia's more flexible, broadly applicable hardware architecture, framing the two companies' differing strategies as a key point of ongoing debate among investors evaluating which approach offers the stronger long-term investment case within the AI infrastructure buildout.

With Tuesday's gain extending Broadcom's recovery from its initial post-earnings dip, investors will likely continue weighing the tension between the company's aggressive multiyear AI revenue projections and the more cautious near-term guidance that initially pressured the stock following last week's results. Muse's substantially raised price target, alongside Broadcom's continued expansion of custom chip partnerships with major AI developers including Google, OpenAI and Anthropic, suggests Wall Street sentiment toward the stock's longer-term trajectory remains largely constructive, even as the shares continue navigating a volatile trading environment shaped by broader shifts in investor appetite for AI-linked semiconductor names throughout 2026.