BNP Paribas Exane Lifts Broadcom Target to $675 on $100 Billion 2027 AI Revenue Bet
Updated
Updated · 24/7 Wall St. · Aug 14
BNP Paribas Exane Lifts Broadcom Target to $675 on $100 Billion 2027 AI Revenue Bet
1 articles · Updated · 24/7 Wall St. · Aug 14
Summary
$675 is BNP Paribas Exane’s new target for Broadcom, up from $640, with the bank keeping an Outperform rating and implying more than 60% upside from the stock’s $417.82 level.
Q2 results underpin that call: Broadcom posted $22.19 billion in revenue, up 47.9%, EPS of $2.44, and AI semiconductor revenue of $10.8 billion, up 143%, while guiding Q3 AI revenue to $16 billion.
BNP’s thesis centers on Broadcom’s custom AI chip position with hyperscalers, rising demand for networking and optical interconnect products, and margin expansion from VMware’s shift to subscriptions.
The bullish case leans on management’s forecast for $56 billion in fiscal 2026 AI semiconductor revenue and more than $100 billion in 2027, backed by Q2 AI bookings above $30 billion.
That optimism contrasts with recent trading: Broadcom is down 1.57% over three months even as AMD rose 13.89% and Marvell gained 25.64%, leaving Broadcom with one of the widest valuation gaps in AI semiconductors.