Broadcom Upgraded by Wolfe Research on AI Chip Prospects with $400 Price Target

Wolfe Research upgraded Broadcom Inc. to Outperform from Peerperform. The firm set a new price target of $400. The upgrade reflects growing confidence in Google’s Tensor Processing Unit (TPU) program. Broadcom serves as a key custom silicon provider for the TPU program.

Wolfe Research notes that Google making TPUs available to third parties creates a credible alternative to Nvidia’s GPUs. This development positions Broadcom as a primary beneficiary.

The research firm substantially increased its revenue forecasts. It projects Broadcom's AI ASIC revenue will reach approximately $44 billion in 2026. Revenue is projected to hit $78.4 billion in 2027, driven by rising TPU shipments. The $400 price target is based on approximately 22 times the bull case earnings per share scenario for 2027.