Broadcom (AVGO) Stock Jumps 5% After Bernstein Upgrades AI Outlook

TLDR

• Bernstein analyst Stacy Rasgon rates Broadcom “outperform” and calls the valuation “absurdly attractive”
• AI demand “shows no signs of slowing,” per Bernstein
• Broadcom’s last quarter saw sales up 16% and profits up 173%
• Rasgon forecasts EPS of $20+ by 2027, up from $5.12 in the past year
• Cantor Fitzgerald maintains Overweight with a $525 price target; Rosenblatt sets target at $500

Broadcom (AVGO) stock jumped 4.7% on Monday morning after Bernstein analyst Stacy Rasgon published a bullish note on AI infrastructure and specifically called out Broadcom as a top pick.

Broadcom Inc., AVGO

Rasgon rates Broadcom “outperform” and confirmed that Bernstein holds the stock in its own portfolio. He made the same call on Nvidia (NVDA), which rose 1.65% on the day.

The note comes at an interesting time. Broadcom hit an all-time high of $413 per share on December 10 last year, and the stock had fallen roughly 22% since then as AI sentiment cooled across the market.

With AVGO trading around $321, Rasgon sees the valuation as a clear opportunity. He projects earnings per share of $20 or more for fiscal year 2027, which would put the stock at roughly 16 times forward earnings at current prices.

The Earnings Math

That forward multiple stands out when you factor in where Broadcom is coming from. The company earned just $5.12 per share over the past twelve months. Getting to $20 by 2027 would represent roughly 400% earnings growth in two years — approximately 100% growth each year.

Even on trailing earnings, the stock trades at around 60 times earnings. Rasgon’s argument is straightforward: if that growth rate holds, 60x looks cheap in hindsight.

Other Wall Street firms are backing a similar view. On March 5, Cantor Fitzgerald maintained its Overweight rating with a $525 price target, following Broadcom’s Q1 2026 earnings report.

Cantor pointed to comments from management suggesting that networking could account for up to 40% of total AI revenues. The firm also raised its EPS estimates and now sees $23–$25 per share as achievable, up from its prior $20 forecast for 2027.

Analyst Targets Stack Up

Rosenblatt also weighed in on March 5, lifting its price target to $500 while keeping a Buy rating. The firm cited CEO Hock Tan’s comments that FY27 visibility has “significantly improved.”

Both firms flagged the $100 billion AI chip revenue milestone as a key marker. Cantor believes Broadcom can surpass that figure in FY27, which underpins both firms’ bullish stances.

Cantor listed Broadcom as a top pick alongside Nvidia, reinforcing the view that AI semiconductor demand remains intact despite recent stock weakness.

Broadcom operates across two business segments: Semiconductor Solutions and Infrastructure Software.

At time of writing, AVGO was trading at $321.15, up $11.29 on the day, with a market cap of approximately $1.5 trillion.

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