Broadcom’s stock surged to a record high after HSBC upgraded the stock to ‘Buy’ and raised its target to $400, citing stronger ASIC project visibility and rising AI-driven demand.

Broadcom (AVGO) shares hit an all-time high of $265.01 on Tuesday after HSBC upgraded the semiconductor designer’s stock, citing improved visibility into the company’s custom chip pipeline and stronger-than-expected pricing power in the Application-Specific Integrated Circuit (ASIC) segment.

The brokerage upgraded Broadcom’s stock to ‘Buy’ from ‘Hold’ and increased the price target to $400 from $240, as per TheFly.

The stock broke its prior June 4 high of $261.08. Though the stock trimmed earlier gains, it traded over 3% higher on Tuesday morning.

HSBC had previously maintained a cautious stance due to limited clarity regarding Broadcom’s Application-Specific Integrated Circuit (ASIC) customer pipeline and concerns over potential erosion of Apple Inc.'s (AAPL) market share in the wireless space. 

However, the research firm is now more optimistic, citing improved insight into Broadcom’s upcoming ASIC projects and strengthened pricing position. 

The brokerage believes the market continues to undervalue Broadcom’s ASIC revenue potential for fiscal years 2026 and 2027, particularly as hyperscalers are expected to increase AI server capital spending on ASICs from 2% in 2023 to 14% by 2027.

Custom silicon circuits, commonly referred ASICs, enable hardware manufacturers to build highly tailored chip solutions for their systems. They provide flexibility to integrate a customer’s proprietary IP with Broadcom and external IP components into a unified solution. 

Broadcom posted $15 billion in revenue for the second quarter (Q2) 2025, marking a 20% increase year-on-year and slightly exceeding Wall Street’s forecast of $14.97 billion, as per Finchat data. 

It said its growth was fueled by strong demand for its AI chip offerings. The company also reported adjusted earnings per share (EPS) of $1.58, topping analyst expectations of $1.57.

However, on Stocktwits, retail sentiment around Broadcom remained in ‘bearish’ territory.

AVGO's Sentiment Meter and Message Volume as of 11.30 a.m. ET on Jun.24, 2025 | Source: Stocktwits

Broadcom stock has gained over 13% year-to-date and over 65% in the last 12 months.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<