Broadcom Inc. (AVGO), headquartered in Palo Alto, California, is a global technology leader that designs, develops, and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor-based devices and analog III-V based products. With a market cap of $978.9 billion, the company offers storage adapters, controllers, networking processors, motion control encoders, and optical sensors, as well as infrastructure and security software to modernize, optimize, and secure the most complex hybrid environments. 

Shares of this semiconductor giant have outperformed the broader market over the past year. AVGO has gained 66.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 11.9%. However, in 2025, AVGO stock is down 4.4%, compared to the SPX’s marginal decline on a YTD basis. 

Zooming in further, AVGO’s outperformance is also apparent compared to the SPDR S&P Semiconductor ETF (XSD). The exchange-traded fund has gained marginally over the past year. Moreover, AVGO’s dip on a YTD basis outshine the ETF’s 8.4% losses over the same time frame.

AVGO's strong performance was driven by its AI business, expecting AI revenue to grow to by 44% in the upcoming quarter. Broadcom is investing in R&D for AI technology, developing the industry’s first 2-nanometer AI XPU and next-generation networking products. The company offers a diversified growth profile with a focus on custom ASICs and high-performance networking chips for AI infrastructure.

On Mar. 6, AVGO shares closed down more than 6% after reporting its Q1 results. Its adjusted EPS of $1.60 topped Wall Street expectations of $1.50. The company’s revenue was $14.9 billion, beating Wall Street forecasts of $14.6 billion. For Q2, AVGO expects revenue to be $14.9 billion.

For the current fiscal year, ending in October, analysts expect AVGO’s EPS to grow 53.4% to $5.69 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.

Among the 32 analysts covering AVGO stock, the consensus is a “Strong Buy.” That’s based on 29 “Strong Buy” ratings, and three “Holds.”

This configuration is slightly more bullish than a month ago, with 28 analysts suggesting a “Strong Buy.” 

On May 8, Bernstein analyst Stacy Rasgon maintained a “Buy” rating on AVGO and set a price target of $250, implying a potential upside of 12.8% from current levels.

The mean price target of $241.74 represents a 9.1% premium to AVGO’s current price levels. The Street-high price target of $300 suggests a notable upside potential of 35.4%.