This Will Be Broadcom’s Stock Price by the End of 2027

While Nvidia (NASDAQ: NVDA) has dominated the conversation as the top artificial intelligence (AI) computing unit provider for years, Broadcom (NASDAQ: AVGO) is becoming a force to be reckoned with. Broadcom’s approach to AI computing is more specialized than Nvidia’s, but with AI workloads starting to become more mature, this specialized approach is gaining momentum.

Although Broadcom has been an excellent performer over the past few years, I think it could deliver additional impressive gains over the next two. If you’re not a Broadcom shareholder already, it’s not too late to scoop up shares.

Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »

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Nvidia makes graphics processing units (GPUs) — versatile parallel processors that can handle a wide array of computationally heavy workloads. Broadcom makes custom chips called application-specific integrated circuits, which are designed in collaboration with its data center clients to run just one style of workload.

What Broadcom’s chip customers give up in flexibility, they gain in performance and cost. Its custom AI chips can outperform Nvidia’s GPUs in some applications.

Google’s Tensor Processing Unit (TPU) is an excellent example of what a properly designed custom AI chip can do. Broadcom and Alphabet collaborated for over a decade to develop it, and when used to handle AI inference tasks, it delivers far better cost performance than a GPU.

Several more AI hyperscalers are working with Broadcom to develop their own ASICs, and its AI chip revenue is skyrocketing. In its fiscal 2026 first quarter (which ended Feb. 1), Broadcom’s AI semiconductor revenue reached $8.4 billion, up 106% year over year. In the current quarter, its AI semiconductor revenue is expected to rise 140% year over year to $10.7 billion. This growth far outpaces what Nvidia is delivering, but Broadcom won’t stop there.

Broadcom projects that its AI chip revenue will reach $100 billion annually by the end of 2027. That doesn’t include its connectivity switches, which are generally included in the AI semiconductor revenue total. So, there’s clearly huge growth ahead that investors should be excited about.

But what will Broadcom’s stock price be?

Wall Street’s consensus projection for Broadcom’s revenue seems to line up with what management is saying. The average analyst following the company expects about $154 billion in revenue for its fiscal 2027. That’s based on a projection of 64% revenue growth during fiscal 2026 and 47% in fiscal 2027. Over the past 12 months, Broadcom has generated $5.21 in earnings per share (EPS). For its fiscal 2027, EPS is projected to be $17.54.

For a company that’s growing this quickly and that is expected to be a cornerstone in the AI computing world, I think assigning it a price-to-earnings (P/E) ratio of 35 would be entirely reasonable. That’s still less than the valuation at which Nvidia has traded for the majority of the past few years, but it’s a slight premium compared to other big tech companies. Currently, Broadcom trades at 67 times earnings — definitely a premium multiple. But with massive growth coming, this premium makes sense.

Should Broadcom trade at 35 times earnings and deliver EPS of $17.54, the stock would have a price of $614. That’s 80% higher than today’s price.

It’s not often you can find a stock that’s expected to deliver 80% growth in two years, but that’s exactly what Broadcom is on track to do. I think it’s one of the top investment options in the market right now, and if you’ve got some money on the sidelines, this is the perfect time to load up on shares.

Before you buy stock in Broadcom, consider this:

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*Stock Advisor returns as of March 16, 2026.

Keithen Drury has positions in Alphabet, Broadcom, and Nvidia. The Motley Fool has positions in and recommends Alphabet and Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.

Prediction: This Will Be Broadcom’s Stock Price by the End of 2027 was originally published by The Motley Fool

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