Broadcom Inc. (NASDAQ:AVGO) shares rose Monday as investors reacted to the chipmaker’s surging artificial intelligence revenue, bullish long-term outlook, and a wave of higher price forecasts from Wall Street following its latest earnings report.

Strong AI Results Drive Quarterly Growth

Last week, the company reported strong quarterly results driven by surging demand for artificial intelligence chips, prompting several Wall Street analysts to raise their price forecasts.

The company posted fiscal first-quarter revenue of $19.31 billion, up 29% year over year, while AI revenue jumped 106% to $8.4 billion.

Broadcom also said it has secured the high-bandwidth memory (HBM) and advanced-node manufacturing capacity at Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) needed to support its AI chip production through 2028, easing concerns about potential supply shortages.

CEO Hock Tan Sees $100 Billion AI Opportunity

CEO Hock Tan said the company expects AI chip revenue to exceed $100 billion in 2027, citing strong demand for custom silicon used by major technology companies.

Tan said the company now has clear visibility into that target and has already secured the supply chain needed to support the growth.

He added that demand from large customers such as Alphabet Inc.’s (NASDAQ:GOOGL) Google, OpenAI, Anthropic, and Meta Platforms Inc. (NASDAQ:META) is driving the expansion of Broadcom’s AI chip business.

Tan also said the company’s AI chip model should deliver margins consistent with the rest of its semiconductor business, highlighting improved yields and cost efficiencies as demand for custom AI accelerators and networking chips continues to rise.

Analysts Raise Price Forecasts After Earnings

Following the results, JPMorgan analyst Harlan Sur reiterated an Overweight rating and raised his price forecast to $500 from $475, citing strong momentum in Broadcom’s AI business and growing demand for AI networking.

Goldman Sachs analyst James Schneider maintained a Buy rating and lifted his price forecast to $480 from $450, pointing to improved visibility into long-term AI demand.

Rosenblatt analyst Kevin Cassidy also maintained a Buy rating and raised his price forecast to $500, highlighting stronger visibility into demand into 2027 and Broadcom’s leadership in AI ASICs and networking.

Meanwhile, Benchmark analyst Cody Acree reiterated a Buy rating with a $485 price forecast, citing Broadcom’s guidance, expanding hyperscaler customer base, and secured supply chain as factors supporting its AI growth outlook.

Broadcom stock has gained 87% over the last 12 months, topping the PHLX Semiconductor’s 72% and the Nasdaq Composite’s 28%.

AVGO Price Action: Broadcom shares were up 4.57% at $345.59 at the time of publication on Monday, according to Benzinga Pro data.

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