Citi analyst Atif Malik raised the Broadcom (AVGO) price target to $500. The previous target was $475. Malik maintained a Buy rating ahead of the fiscal second-quarter results on June 3. The analyst expects sales and earnings per share to exceed consensus estimates.
Strong demand for artificial intelligence products drove the increased optimism. AI revenue currently accounts for 49% of total sales. Malik projects this share will reach 81% by the fourth quarter of fiscal 2028.
Citi increased its 2027 AI sales estimate to $115 billion. The previous 2027 projection was $100 billion. The firm forecasts total AI sales will reach $180 billion by 2028. Growth stems from demand for custom AI accelerators and networking silicon from major hyperscalers.