Wells Fargo upgraded its rating on Broadcom Inc. to Overweight from Equal-weight on January 15. The bank set a new price target of $430, up from $410, indicating a potential 24% upside.
The upgrade followed a recent pullback in Broadcom's stock. Wells Fargo cited increasing confidence in significant catalysts through 2026. The bank raised its revenue and earnings per share estimates for the company.
For calendar year 2026, revenue estimates were lifted to $100.3 billion from $97.0 billion. Earnings per share estimates increased to $10.80 from $10.36. For 2027, revenue projections rose to $143.8 billion from $130.5 billion, with earnings per share moving to $15.35 from $13.90.
These revisions reflect improved guidance for Broadcom's AI semiconductor revenue. It is now projected to reach $52.6 billion in 2026, a 116% year-over-year increase. For 2027, AI revenue is forecast at $93.4 billion, up 78% year-over-year.
Wells Fargo also forecasts low double-digit year-over-year growth for Broadcom's Infrastructure Software segment in fiscal year 2026. The company ended fiscal year 2025 with nearly $73 billion in Infrastructure Software backlog.
On the same day, Citi reaffirmed a Buy rating on Broadcom with a price target of $480. This followed a transfer of coverage at the firm. Citi supported its stance by pointing to the company's growing AI sales.
Broadcom Inc., founded in 1961, provides semiconductor devices and infrastructure software globally.