Broadcom (AVGO) Stock Surges Nearly 5% on Bernstein’s Bullish AI Upgrade

Key Takeaways

• Bernstein’s Stacy Rasgon assigns ‘outperform’ rating to Broadcom, describing its current valuation as “absurdly attractive”
• Analyst sees no indication of weakening AI demand trends
• Most recent quarter delivered 16% revenue growth and 173% profit surge
• Rasgon projects EPS exceeding $20 by fiscal 2027, compared to $5.12 trailing twelve months
• Cantor Fitzgerald holds Overweight rating with $525 target; Rosenblatt sets $500 price objective

Broadcom (AVGO) shares climbed 4.7% during Monday’s trading session following a highly optimistic research note from Bernstein analyst Stacy Rasgon, who highlighted the semiconductor giant as a premier investment opportunity in the AI infrastructure space.

Broadcom Inc., AVGO

Rasgon assigned an “outperform” rating to Broadcom and disclosed that Bernstein maintains a position in the stock within its proprietary portfolio. The analyst issued a parallel recommendation on Nvidia (NVDA), which advanced 1.65% during the same session.

The timing of this upgrade carries particular significance. Broadcom reached a peak of $413 per share on December 10 of the previous year, subsequently declining approximately 22% as broader market enthusiasm for artificial intelligence investments waned.

With AVGO shares trading near $321, Rasgon characterizes the valuation as compelling. His analysis forecasts earnings per share reaching $20 or higher for fiscal year 2027, implying the stock currently trades at approximately 16 times forward earnings based on present pricing.

Breaking Down The Earnings Projection

That forward valuation multiple becomes particularly noteworthy when considering Broadcom‘s starting point. The company generated only $5.12 per share during the trailing twelve-month period. Achieving $20 by fiscal 2027 would represent approximately 400% earnings expansion over two years — translating to roughly 100% annual growth.

Even when measured against trailing earnings, the stock commands around 60 times earnings. Rasgon’s thesis is clear: if the projected growth trajectory materializes, today’s 60x multiple will appear modest in retrospect.

Additional Wall Street analysts are expressing similar confidence. On March 5, Cantor Fitzgerald reaffirmed its Overweight rating alongside a $525 price objective, responding to Broadcom’s Q1 fiscal 2026 earnings release.

Cantor highlighted management guidance indicating that networking solutions could comprise as much as 40% of total AI-related revenues. The firm also increased its earnings estimates, now projecting $23–$25 per share as attainable, up from its previous $20 forecast for fiscal 2027.

Multiple Firms Raise Price Targets

Rosenblatt similarly updated its outlook on March 5, increasing its price target to $500 while maintaining a Buy recommendation. The firm referenced CEO Hock Tan’s statements that fiscal 2027 revenue visibility has “significantly improved.”

Both research firms emphasized the $100 billion AI chip revenue threshold as a critical benchmark. Cantor projects Broadcom will exceed that figure during fiscal 2027, forming the foundation of both firms’ positive outlooks.

Cantor positioned Broadcom as a top selection alongside Nvidia[[/LINK_END_3]], strengthening the perspective that AI semiconductor demand remains resilient despite recent share price volatility.

Broadcom conducts operations through two primary divisions: Semiconductor Solutions and Infrastructure Software.

At the time of publication, AVGO was changing hands at $321.15, representing a $11.29 gain for the session, with a market capitalization of roughly $1.5 trillion.

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