Broadcom’s Q1 Earnings Beat Has Wall Street Optimistic — Analysts Say This Was The ‘Mic-Drop Moment’

Bernstein hiked its price target for Broadcom to $525 from $475 while keeping an ‘Outperform’ rating, citing the company’s strong second-quarter guidance.

• Broadcom CEO Hock Tan stated that the company’s fiscal year 2027 revenue has “dramatically improved” and that the chip designer has a line of sight to more than $100 billion in AI chip revenue.
• Rosenblatt analysts called this the “mic-drop moment” of the earnings call.
• Analysts at JPMorgan hiked their price target to $500 from $475, while keeping an ‘Overweight’ rating, citing continued upside in Broadcom's AI semiconductor segment.

Broadcom Inc.’s (STUB) first-quarter (Q1) earnings beat and a better-than-expected guidance for the second quarter (Q2) resulted in a slew of price target hikes from Wall Street.

Broadcom’s shares were up more than 4% in Thursday’s opening trade. Retail sentiment on Stocktwits around the company trended in the ‘extremely bullish’ territory, with message volumes at ‘extremely high’ levels at the time of writing.

Why Is Wall Street Bullish About AVGO?

According to TheFly, Rosenblatt analysts raised their price target for AVGO stock to $500 from $450 while keeping a ‘Buy’ rating. The firm highlighted that Broadcom’s Q2 guidance surpassed the consensus estimate by 10%, but that was not the only positive.

Broadcom CEO Hock Tan stated that the company’s fiscal year 2027 revenue has “dramatically improved” and that the chip designer has a line of sight to more than $100 billion in AI chip revenue. Rosenblatt analysts called this the “mic-drop moment” of the earnings call.

Analysts at JPMorgan hiked their price target to $500 from $475, while keeping an ‘Overweight’ rating, citing continued upside in Broadcom's AI semiconductor segment.

Similarly, Bernstein hiked its price target for Broadcom to $525 from $475 while keeping an ‘Outperform’ rating. The firm cited Broadcom’s strong Q2 guidance on a much better-than-expected AI outlook as the reason for its target hike.

Truist analysts hiked their price target for Broadcom to $545 from $510 while keeping a ‘Buy’ rating. The firm expects Broadcom’s commentary to be interpreted constructively for a broader range of stocks.

Broadcom’s Q1 At A Glance

Broadcom reported earnings per share (EPS) of $2.05 in the first quarter, compared to an EPS of $1.6 during the same quarter a year ago, while Wall Street expected an EPS of $2.02.

The company’s revenue in Q1 stood at $19.31 billion, compared to an estimate of $19.14 billion. Broadcom said its AI revenue more than doubled year-on-year to $8.4 billion during the quarter, driven by robust demand for custom AI accelerators and AI networking.

For Q2, Broadcom expects revenue of $22 billion, above the consensus estimate of $20.4 billion. AI chip revenue for the quarter is expected to be $10.7 billion.

The company also said it entered into a new partnership with OpenAI in Q1 and expects to ship over a gigawatt of compute capacity in 2027.

How Did Stocktwits Users React?

One user on the platform praised Broadcom CEO Tan, stating that he focuses the research and development on the company’s highest-margin products.

Another user stated that Broadcom’s guidance was “absolutely huge.”

AVGO stock is down 5% year-to-date, but up 72% over the past 12 months.

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